The Great Britain pound reversed its earlier moves today, rebounding versus the US dollar and the Japanese yen but trimming gains against the euro and the Swiss franc. Politics are likely to continue driving the currency in the near future.
Apparently, markets are betting on the victory of the Conservative party of UK Prime Minister Theresa_May in the coming general election, and that is viewed as a positive outcome. May showed tough stance, willing to walk away from Brexit talks with the European Union if the deal the EU offers seems too unfavorable to the United Kingdom:
We will be there to negotiate the right deal but what I have said is that no deal is better than a bad deal. We have to be prepared to walk out.
On the contrast, her opponent from the Labour party, Jeremy Corbyn, demonstrated that he wants to get a deal no matter what:
There’s going to be a deal. We will make sure there is a deal.
GBP/USD opened at 1.2836, dropped to 1.2793 intraday, but bounced to trade at 1.2856 as of 10:07 GMT today. EUR/GBP traded at 0.8680 after opening at 0.8694 and falling to the session low of 0.8655.
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