Daily Currency Update

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Pound continues to make steady gains

GBP - British Pound

The pound pushed slowly higher through the day yesterday. Risk appetite was generally a bit healthier and the idea of a Conservative majority helped encourage traders to hit the bid in GBP/USD throughout the day. At one point it looked like the pair might make a sustained break through 1.29, alas it didn't, and failed on the back of a poll showing that Labour was only 7 points behind.

That said, it isn't all that far away from the 1.29 big figure this morning. Expect another fairly subdued session for the pound today amid a lack of data and polls driven trading conditions.

Key Movers

Risk was "on" for most of the day yesterday. US stocks rallied on hopes for a US-China. There's growing hope that first phase of a trade deal can be met before Dec 15th when new tariffs are expected to be raised.

As far as the euro area goes the latest IFO Business Climate came in slightly better than expected at 95 (vs 94.9) yesterday. However it's still a very low reading. A report was also released stating that the key manufacturing sector remains stuck in recession, but may have reached its low point. It's this sort of data that will continue to keep pressure on the single currency for the foreseeable.

Expected Ranges

GBP/USD: 1.2850 - 1.2950 ▲

GBP/EUR: 1.1620 - 1.1690 ▲

GBP/AUD: 1.8900 - 1.9100 ▲

GBP/NZD: 2.0000 - 2.0150 ▲