Expectations that the UK's Conservative Party is poised to win a solid majority in next week's general election gave a solid boost to the Pound Sterling. Analysts say that that could help alleviate uncertainty which has put pressure on the Pound. Avoiding a hung Parliament will likely appeal to investors who have largely taken a wait-and-see stance, and analysts say that many investors expect the Pound to start to recover.
As of 11:15 am in London trading, the GBP/USD was higher at $1.3050, a gain of 0.4225% and sliding from the earlier peak of $1.30642. The EUR/GBP was lower at 0.8483 Pence, a loss of 0.481%; the pair has ranged from a trough of 0.84807 Pence to 0.85345 Pence.
UK Services Sector PMI Upbeat
Currency strategists say that the in the days up t the election a sense of wariness may permeate sentiment but the outlook, given the latest polls, is still good for Sterling. In fact, Sterling has gained about 6% since early October against the greenback. An improvement in data could also be helping the Pound today; Markit reported that the UK Services Sector improved in November with a reading of 49.3, above the flat 48.6 that economists had predicted.