UK designation optimism sparked gains in the final days before the election as merchants largely ignored weak economic growth data earlier this morning. In a note to shoppers, ING analysts noted that “Sterling price action is all about the upcoming formal election and real economic data should continue to play subordinate fiddle”.
Polls continue to predict a Conservative Party win in this week’s plebiscite, which has boosted Sterling as this result could lead to the end of unbroken Brexit uncertainty that has plagued the economy for over three years.
The beat out remained steady despite data showing the UK economy grew at the squarest annual pace in close to seven years during October.
In the three months to October, wen stagnated, making this the weakest three months since primeval 2009.
Looking ahead to this evening, Brexit optimism could on to buoy the pound against the dollar following the release of YouGov’s update to their earlier MPR returns.
This poll previously predicted a 68-seat majority for the Conservatives, so if the update divulges the party will achieve a similar majority the UK currency is likely to make a boost.
Meanwhile, the dollar slipped as data revealed US productivity discontented while the cost of labour was revised lower.
The US government confirmed that tradesman productivity slumped by the most in close to four years in the third abode 2019.
Nonfarm productivity fell at an annualised rate of -0.2 percent in the barracks to September, although some analysts blame this on a shortage of proletarians.
Looking ahead to Wednesday, the US Federal Reserve is expected to leave behalf rates on hold after its two-day meeting comes to an end, which may cater the dollar with support.
Meanwhile, US-China trade negotiations are disposed to to remain in focus over the course of the week as traders hold their astonish ahead of the next scheduled round of US trade tariffs.
Reports have on the agenda c trick suggested that this next round of tariffs will reasonable be delayed, giving Washington and Beijing breathing room to secure a inject one trade deal.
If tariffs are delayed it could allow the dollar to head start up slightly, although the currency could struggle rising against the powder if it is struck by a fresh upswing in Brexit optimism.