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GBP/USD pushes through 1.30 as election looms

GBP - British Pound

Its been another good start to the day for sterling with it up across the board as next week's general election draws ever closer. At the time of writing the push higher hasn't been put down to any particular polls, so a break through technical resistance and traders starting to price in a Conservative majority may be the reasons for GBP/USD breaking above 1.30.

Whether it can hold on to these gains remains to be seen as any narrowing of the polls will cause jitters amongst traders who favour the certainty of a Tory majority and getting the UK exit from the EU finally sorted. It also may have benefited from Donald Trump's distancing himself from the UK general election saying he could work with any Prime Minister and going back on previous statements about the NHS being part of any future trade deal between the UK and US.

Trump is in the UK for the NATO summit which continues today so there is plenty of time for the president to still rock the boat. GBP/EUR trades at 1.1750

Key Movers

US/China trade continues to dominate the news outside of the Brexit bubble with the likelihood of a phase one deal being done by the 15th December looking increasingly unlikely. Another round of tariff rises are due on this date and look likely to be implemented if comments from Donald Trump yesterday were anything to go by. The President stated "I don't have a deadline" when asked when he wanted to get a trade deal sorted with the apparent ambivalence on the subject rocking equity markets around the world and risk assets being shunned. It appears Trump is willing to use the trade war as a tool for re-election next year so those hoping for a "Santa-rally" in stocks may be left disappointed.

A further derailment of a potential agreement may also have been caused by the US House of Representatives passing a bill to monitor alleged aggression towards Uighur Muslims in Eastern China. The bill has seen targeted sanctions implemented against certain Chinese officials. This along with the recent bill to keep tabs on Hong Kong's independence are likely to have riled the Chinese hierarchy.

Overnight we have seen Australian Q3 GDP miss target showing 0.4% when 0.5% was eyed however the sting was relieved somewhat with Q2 being revised upwards from 0.5% to 0.6%.

USD/JPY is down to 108.45; EUR/USD is at 1.0860

Expected Ranges

GBP/USD: 1.2940 - 1.31 ▲

GBP/EUR: 1.1680 - 1.1830 ▲

GBP/AUD: 1.9030 - 1.9210 ▲

GBP/NZD: 2.0 - 2.0180 ▲

GBP/CAD: 1.7280 - 1.7415 ▲