Pound Hits 7-Week High on Opinion Polls and UK Construction PMI

The pound today rallied to new multi-week highs against the US dollar buoyed by positive sentiment as the latest opinion polls revealed that Boris Johnson is still leading Labour’s Jeremy Corbyn. The GBP/USD’s rally was further fueled by the positive UK construction PMI released by Markit Economics showing that the country’s construction industry was improving.
The GBP/USD currency pair today rallied from an opening low of 1.2930 in the Asian session to a high of 1.3003 breaking the crucial 1.30 barrier but was off this high at the time of writing.
The currency pair trading with a bullish bias from the Asian session as investors reacted to the latest opinion poll results indicating that the Conservative Party was still ahead. Opinion polls conducted by Survation and Electoral Calculus show that the Tories are leading with about 42–43%, while the Labour Party is second with 32–33%. However, the Tories lead in terms of the potential seats won has shrunk from 76 to 34. The pair’s rally was also boosted by the release of the Markit/CIPS UK construction PMI for November, which came in at 45.3 versus the expected 44.5 print.
The greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 97.75 today, also contributed to the cable’s rally. However, investors are worried that Johnson’s popularity could dimish given his close ties with US President Donald Trump, who is currently visiting London.
The currency pair’s future performance is likely to be affected by UK election headlines, other geopolitical events, and US dollar dynamics.
The GBP/USD currency pair was trading at 1.2998 as at 12:40 GMT having rallied from a low of 1.2930. The GBP/JPY currency pair was trading at 141.46 having fallen from a high of 141.70.

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Original from: www.earnforex.com