New York






Conservatives lead sees GBP/USD gain

09 Dec 2019

With the weekend polls giving British Prime Minister Boris Johnson a favourable lead, the GBP/USD has soared up to a seven-month high as it closes in onto the 1.32 handle. The pair opened Monday’s session at 1.3141. Sellers now target October’s 1.3013.

Expectations for the Conservatives to win the December 12th election pushed the Cable closer to Thursday’s high handle of $1.3166. A win for Johnson means an end for the political concerns on Brexit. The difference between the two sides widened to 14 percentage points according to Monday’s poll by Survation for ITV’s Good Morning Britain. 

The EUR/USD remains to be traded over the 1.1050 handle as it looks to strengthen following Germany’s exports increase in October. U.S. Non-Farm Payrolls results and weak German industrial output pressured the pair to a decline on Friday. Whilst being traded at 1.10395 on Friday, the pair now trades at 1.10575. 

In November, U.S. Non-Farm Payrolls exceeded estimations, highlighting a rise of 266,000 jobs. In addition, the University of Michigan's preliminary Consumer Sentiment Index in December also went beyond predictions, scoring at 99.2.  

The Canadian dollar trades at C$1.3255 to the U.S. unit, following a decline on Friday. The currency was affected after 71,200 net positions were lost from the Canadian job market in November. An increase of 10,000 was previously forecasted.