Trade 100 Bonus - the best offer on Forex market

Pound Weakens as Traders Question Complacency Over U.K. Election

Updated: 26 November 2019 | 07:27 PM

Want the lowdown on European markets? In your inbox, before they open, every day. Sign up here.

The pound slipped as polls showed the ruling Conservative party’s lead narrowing into a December election, with the tightening race raising investor fears about an inconclusive result.

The U.K. currency weakened versus all of its Group-of-10 peers as the latest surveys of voting intention showed the opposition Labour party making up some ground following the release of its manifesto last week. The most positive outcome for investors betting the pound will rise is a Conservative win, whereas if no party gains a majority it raises the prospect that an impasse over Brexit will drag on into next year.

The pound has acted as a barometer of political risk throughout the Brexit process and has recovered nearly 8% since hitting an almost three-year low in September, on hopes of an end to the uncertainty. Markets favor a clear win for Conservative leader Boris Johnson, which would make it easier to get his existing Brexit deal through Parliament, allowing the country to move on to trade talks with the European Union.

The currency’s drop “highlights somewhat complacent pricing of political risk in the U.K.,” wrote Adam Cole, chief currency strategist at Royal Bank of Canada, in a research note. “It is hard to reconcile this degree of confidence with current polling results.”

A Kantar poll on Tuesday showed the Conservatives at 43% and Labour at 32%, while an ICM/Reuters poll released Monday put the Conservatives at 41% and Labour at 34%, narrower margins than the double-digit lead of previous surveys in the past 10 days. Pollsters say this election is a tough one with voters prone to switching parties as Brexit disrupts traditional allegiances. Surprise results in the Brexit vote and the last election also mean such surveys are seen as less reliable.

Sterling pared its drop to 0.2% at $1.2879 by 11:55 a.m. in London, after gaining 0.5% Monday. The currency also weakened by 0.2% versus the euro to 85.57 pence per euro. U.K. government bonds, which have acted as a haven from Brexit risk, gained to send 10-year yields down four basis points to 0.65%.

Cole sees a risk of a repeat of the 2017 election, where Labour performed much better than initially expected, leading the Conservatives under Theresa May to lose their majority in Parliament. He favors betting on the pound to fall from here, but “that may change multiple times between now and Dec. 12,” he said.

Add your comment

See more similar items

The European Union's executive has proposed broadening scrutiny

The European Union's executive has proposed broadening scrutiny

The European Association's office has proposed a widening examination of outside interests in the alliance, as indicated by an open draft archive, some portion of endeavors to shield more divisions from potential Chinese purchasers. Oversight of some remo
ECB Increases PEPP Bond-Buying Program

ECB Increases PEPP Bond-Buying Program 

The European National Bank said Thursday it will expand the size of its fundamental pandemic battling security buy program by 600 billion ($672 billion), increase its endeavors to help a Eurozone economy that is relied upon to shrivel by
FXOpen Launches AstroPay Payments

FXOpen Launches AstroPay Payments

FXOpen launches a new payment system for their clients. They launched a cutting edge payment system via AstroPay Card. AstroPay Card is a prepaid virtual card, accepted at hundreds of online stores integrated with AstroPay. AstroPay issues cards with
Airlines cut domestic fares by an average 23% last month

Airlines cut domestic fares by an average 23% last month

Aircrafts cut residential admissions by a normal 23% a month ago as traffic got from April lows, worldwide carrier body IATA said on Wednesday notice that post coronavirus limiting represented a further danger to productivity.  Local traveler traffic
The U.S. dollar was down on Wednesday morning

The U.S. dollar was down on Wednesday morning

The U.S. dollar was down on Wednesday morning in Asia subsequent to expanding hopefulness over a worldwide monetary recuperation from COVID 19 expanded speculator hazard hunger.  Speculators concentrated on nations proceeding to release lockdown quan
The pound flooded to its most noteworthy in longer than a month

The pound flooded to its most noteworthy in longer than a month

The pound flooded to its most noteworthy in longer than a month against the dollar on the hypothesis the current week's Brexit talks may begin to yield a trace of progress.  Authentic is on its longest rising streak versus
New worldwide rules including physical separating to restart flying securely

New worldwide rules including physical separating to restart flying securely

New worldwide rules including physical separating to restart flying securely during the coronavirus pandemic could signify two hours of pre flight time for travelers at certain air terminals during top hours, the leader of a universal air terminals' gathe
P I have Too Much on Plate to Obsess About Brexit

P I have Too Much on Plate to Obsess About Brexit

Indeed, even with the danger of a hard Brexit hanging over their heads, pound dealers appear to be looking the other way.  The money contacted a three week high against a more fragile dollar, one day before loaded exchange
The dollar has auctioned off in early European exchange Monday

The dollar has auctioned off in early European exchange Monday

The dollar has auctioned off in early European exchange Monday, as fewer speculators look for this place of refuge in the midst of rising hopefulness about the worldwide monetary recuperation, and as U.S. President Trump presents a deliberate reaction
Dubai could see a downturn of around 5.5% in 2020

Dubai could see a downturn of around 5.5% in 2020

Dubai could see a downturn of around 5.5% in 2020 as it faces about $10 billion underwater developments this year while incomes are relied upon to drop in accordance with the example of the 2009 emergency, Bank of America
 Germany is working on a stimulus package worth 75 billion-80 billion euros

 Germany is working on a stimulus package worth 75 billion-80 billion euros

Germany is dealing with a boost bundle worth 75 billion 80 billion euros ($83 billion $89 billion) to help financial recuperation after the coronavirus pandemic, week after week Bild is Sonntag revealed.  Chancellor Angela Merkel's alliance would stu
France stocks were lower after the nearby on Friday

France stocks were lower after the nearby on Friday

France stocks were lower after the nearby on Friday, as misfortunes in the Nourishments and Medications, Gas and Water, and General Money related areas drove shares lower.  At the nearby in Paris, the CAC 40 declined 1.59%, while the
The dollar edged lower in early European exchange Friday

The dollar edged lower in early European exchange Friday

The dollar edged lower in early European exchange Friday, however exchanging ranges have been tight as dealers endeavor to weigh up the clashing powers of a proceeded with financial recuperation with increased strains over China's transition to fix author
Euro Buoyed by Recovery Fund Plan

Euro Buoyed by Recovery Fund Plan

The euro has kept on indicating quality in early European exchange Thursday, as brokers keep on the upside in the single money following the declaration of a heavy intend to prop up the alliance's infection hit economies.  At 3:05
Wall Street set for higher open as recovery hopes

Wall Street set for higher open as recovery hopes

Wall street's major files were set for another meeting of increases on Wednesday as a restoration in business movement drove any expectations of a financial recuperation, obscuring worries over stewing strains between the US and China.  Travel relate
The U.S. dollar skipped in early European exchange Tuesday

The U.S. dollar skipped in early European exchange Tuesday

The U.S. dollar skipped in early European exchange Tuesday in the midst of rising hazard avoidance given the mounting pressures among China and the U.S. over the new security law for Hong Kong.  At 2:45 AM ET (0645 GMT),
Grand Capital Lunched an office in India

Grand Capital Lunched an office in India

Indeed, even in this troublesome period for the economy, Grand Capital keeps on guaranteeing that the organization's customers consistently have a chance to counsel experts on trading related issues their locale. Another local office opened its entryways
The U.S. dollar auctions off in early European exchange Tuesday

The U.S. dollar auctions off in early European exchange Tuesday

The U.S. dollar auctions off in early European exchange Tuesday in the midst of good faith over the worldwide recuperation given positive updates on a potential coronavirus immunization just as the further reviving of economies, inciting financial special
Euro’s Comeback Rests on EU Leaders Agreeing on a Recovery Fund

Euro’s Comeback Rests on EU Leaders Agreeing on a Recovery Fund

Pioneers in the euro territory need to make its broadly touted recuperation finance a reality to resuscitate the fortunes of its battered money.  The euro's rebound was undermined after the supposed thrifty four Austria, Denmark, Sweden, and the Neth
EU must present united front to shield pandemic-hit banks

EU must present united front to shield pandemic-hit banks

European nations need to unite to shield their banks from the coronavirus episode, one of the coalition's top controllers said on Monday, possibly utilizing a 500 billion euro ($545 billion) EU recuperation store to do as such.  The comments
The dollar began the week marginally higher in Europe

The dollar began the week marginally higher in Europe

The dollar began the week marginally higher in Europe, yet in humble volumes discouraged by open occasions in the U.K. what's more, U.S., against a scenery of stewing pressure between the U.S. what's more, China.  By 3:45 AM ET
Air France must slash domestic traffic in exchange for state guarantees

Air France must slash domestic traffic in exchange for state guarantees

Air France (PA: AIRF) should "radically" diminish its residential air traffic in return for state advance ensures, French Condition Priest Elisabeth Borne said on Sunday.  Local courses were served by choices as fast trains, she noted in a meeting
Chinese lenders could post flat or even falling profits in 2020

Chinese lenders could post flat or even falling profits in 2020

Chinese loan specialists could post level or in any event, falling benefits in 2020 regardless of income development in the primary quarter, as the coronavirus flare up carries challenges to the economy, the nation's national bank said in an
UK Labor Party ask for an Emergency inquiry for UK Lockdown situations

UK Labor Party ask for an Emergency inquiry for UK Lockdown situations

England's Labor party Gathering on Saturday required an earnest investigation into claims that Executive Boris Johnson's senior counsel disrupted lockdown norms with a 400 km excursion to guarantee childcare for his 4 year old child.  Work kept in to
The United Kingdom need employers to pay 20%-30% of furloughed wage cost

The United Kingdom need employers to pay 20%-30% of furloughed wage cost

The Assembled Realm has attracted up plans to expect businesses to cover 20% to 30% of furloughed workers' wages from August to decrease the huge weight of the coronavirus emergency on government funds, The Occasions paper announced.  The Assembled

Latest Forex News

Updated: 4 June 2020 | 02:22 PM
Updated: 3 June 2020 | 07:36 PM
Updated: 3 June 2020 | 05:44 AM
Updated: 1 June 2020 | 02:23 PM
Updated: 31 May 2020 | 03:04 PM
Updated: 29 May 2020 | 05:45 PM
Updated: 28 May 2020 | 07:26 PM
Updated: 27 May 2020 | 01:48 PM
Updated: 27 May 2020 | 10:51 AM
ad