French Election Concerns Send Sterling Higher
The Pound Sterling was higher across-the-board on Tuesday, and hit an 8-week peak versus the common currency Euro. Investors are jittery about the upcoming first round of voting in France’s presidential election, with the latest poll showing all four contenders in a statistical dead heat. Earlier polls had suggested that the first round of voting would result in a win for Marine Le Pen, running on an anti-EU/anti-immigrant platform, and centrist Emmanuel Macron. However, there has been a surge in interest for Jean-Luc Melenchon, the far left candidate, which has sparked concerns that the ultimate choices might be between a hard-right and a hard-left candidate.
As reported at 11:47 am (BST) in London, the EUR/GBP was trading at 0.8433 Pence, a loss of 0.45%; the pair has ranged from the 0.843 Pence to a peak of 0.845 Pence. The GBP/USD was trading higher at $1.2652, a gain of 0.70%.
Pound Outlook Still Uncertain
Though the Pound is up about 1.5% over the past month, since the June 23rd 2015 vote in favor of the Brexit, the Pound has lost about 15% of its value relative to the greenback. Currency strategists say that “bad news” is already priced into the pound but there have been no new catalysts to provide any additional support. Last Friday’s data showed that speculators have increased their bets against Sterling. Analysts say that unless this week’s retail sales data is upbeat, then it’s likely that the Bank of England’s current monetary policy will not be challenged.