GBP/USD recovers Friday’s losses to 1.3150 as Tories top UK election poll
- GBP/USD stops Friday’s declines as all major 10 polls show Conservatives leading in the race of December election.
- The latest USD gains seem checked as markets enter the key week, risk tone compresses.
- Trade/political headlines will be in the spotlight.
GBP/USD takes the bids to 1.3150 while heading into the London open on Monday. The quote seems to cheer the Tory lead in all the polls for this week’s election in the United Kingdom (UK). Further to support argument will be the traders’ profit-booking after the US Dollar (USD) registered broad gains on Friday.
ICM posts the least gap for the odds of victory between the ruling Conservatives and the main opposition Labour Party while Opinium stands on the other extreme. Even so all 10 top forecasters say that the Tories will win this election. Though, odds of a hung Parliament can’t be denied due to the slim majority of the Conservatives in some part of the Westminster.
It’s worth mentioning that allegations of the UK Prime Minister (PM) Boris Johnson keep rising with his latest media appearance accepting mistakes in promises concerning the National Healthcare System (NHS) and Northern Irish borders.
Elsewhere, the tussle between the United States (US) and China seems to renew with China stopping the usage of foreign computers and software by the government administration as well as shrugging off the trade war impact. Further, harsh comments from the Governor of China’s Xinjiang and a likely increase in Hong Kong protests, as indicated by Bloomberg, keep the risk tone heavier off-late.
As a result, the US 10-year treasury yields stop advancing, around 1.84%, whereas most Asian stocks remain subdued.
Given the latest polls showing optimism for the Tories, markets can expect a further upside of GBP/USD. However, a thin majority in some parts of Westminster and the UK PM’s receding fame in media can offer surprises in this week’s general election.
Technical Analysis
While sellers are likely to enter below 1.3100, with October highs near 1.3013 being the target, highs marked in May and April, close to 1.3180 and 1.3200 can keep Bulls happy.