- Home
- >
- Fundamental Analysis
- >
- It is not good to buy a British pound before the election
It is not good to buy a British pound before the election
Rating:
Loading...The pound declined after a poll showed Theresa May’s Conservative Party may miss winning a majority at next week’s general election and face a hung parliament.
The pound has been strengthening in past weeks, despite a slowing economy and increased security risks, as earlier surveys suggested a bigger Tory lead.
The slide in the pound is another example of markets not being prepared for a close election, let alone a hung parliament,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney.
“Speculative short positions have been unwound, leaving sterling looking for fresh direction. So speculators may reload short-pound positions if the election is indeed a lot closer than was implied by the sharp rally when the election was announced.”
Westpac, the second most-accurate major currencies forecaster in Bloomberg’s latest ranking, maintains its expectations for the sterling to fall to $1.26 over the next month, Callow said.
Source: Bloomberg Pro Terminal
Jr Trader Ivan Ivanov
Varchev Traders Read more:
GBPBGN: increase in price is more probable from the current levels
EURGBP: probability for an upcoming downward impulse
GBPUSD short term sentiment in front of important data at 11:30 (GMT+3)
A price below 2.268 can lead to a new decline by the pound
Pound rises after the defeat of May’s Brexit deal
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
