Pound Lower as PM Vote Looms

The pound Sterling moved lower in Monday trade in London as investors hedged against further Pound weakness ahead of tomorrow’s election. The Conservative party will decide on Tuesday who will take the helm at 10 Downing Street. Most pollsters expect Boris Johnson to become the next prime minister; FX traders fear that Johnson could set Pound Sterling sentiment back significantly.

As reported at 6:25 am (GMT), the GBP/USD was trading lower at $1.2467, a loss of 0.26%; the pair has ranged from $1.2463 to $1.2519 in today’s session. The EUR/GBP was trading at 0.8999 Pence, up 0.26% and off the earlier peak of 9000.00 Pence.

A Look Ahead to PMIs

From a data release standpoint, market players don’t expect any market movers until mid-week when preliminary manufacturing data begins to be released for the month of July. Markit will be reporting that Germany’s manufacturing sector is predicted to have improved slightly to 45.2, while France’s is likely to fall to 51.6. The Eurozone as a whole should see some improvement with the forecasted reading of 47.7, up from 47.6.

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