Market Research

GBPUSD fights to recover as UK polls continue tightening

30-May-2017 @ 12:04 PM

GBP/USD made an attempt to recover and is now sliding once again. UK PM Theresa May and Labour leader Jeremy Corbyn both gave lengthy interviews to Jeremy Paxman. The formidable interviewer clashed with both of them.

Some analysts suggest that Corbyn “beat expectations”, yet these expectations were set quite low. The debates usually fail to make a difference for most voters that have already made their minds.

However, politics never stay too far from the movements in the pound. Opinion polls continue flowing in. Yesterday’s trading saw a reaction to the weekend polls. Some showed May with a narrower lead but some still put her at 12-14% against Labour.

The latest polls were worrying for the Prime Minister and for markets. Survation showed the lowest Tory lead so far: only 6%, with gains for Corbyn’s party and a squeeze for May’s.

Cable trades just above 1.28, but the attempt to recapture higher ground stalled at 1.2850. Support awaits at 1.2775, which was the low seen yesterday. The next line of support is at 1.2750, the post-elections announcement low. Resistance is at 1.29, a round number that also served as support.

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