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UK election jitters not feeding through to a soft Pound – Investec

FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, mentions that with Torries set to take the most seats in the UK elections, the prevailing Tory biased effect on the GBP is yet to be seen.

Key Quotes

“There were lots of comments yesterday afternoon on progress with Greece regarding their talks for reform and a financial bailout. Apart from some comments from EU's Juncker that Greece should be doing more, on the whole the rhetoric was one of progress and painted Greek leaders as more likely to reach the necessary compromises after having to recently pull liquidity in from Greek banks to stay financially afloat. This sent the euro rallying against the dollar, reaching 1.07 again which paved the way for GBPUSD to creep back to 1.4900.”

“The tight ranges in GBPUSD are dominating proceedings at the moment which we see as slightly unnerving considering there is such a heap of uncertainty going into the General Election in a couple of weeks’ time.”

“Pre-election jitters in the UK are not feeding through to a weaker Pound yet, despite polls continuing to paint an uncertain picture of the outcome. It appears Labour have edged in to a narrow lead which, whilst it hasn’t had a prevailing effect on GBP up to this point, is not the favoured outcome for a Tory biased pound.”

USD/JPY falls to daily lows

After declining from 119.75 to find support at 119.40, the USD/JPY performed a small bounce to the 119.50, today's pivot point at 119.55. However, the USD/JPY was sold again at this level and currently it's trading at daily lows around 119.40. The move is mainly fueled by an extended US dollar corrective slide from the previous session.
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