After a bearish reversal against the greenback last week, the pound currency finally rebounds today. The sterling’s strength comes in against fresh UK election news that supports traders in sessions.
Last week, the pound was driven down by the upsetting UK PMI data. The UK Services PMI fell to its 40-month low this month, disappointing traders and pushing the sterling lower in sessions.
The GBP USD exchange rate went up by 0.39% or 0.0050 points this Monday’s trading sessions. GBP USD pair currently trades for $1.2880, bouncing up from its previous close of $1.2830.
The pound currency and the US dollar pair saw three reversals this month. Its gains have not exceeded past $1.2900 levels and its loss has not gone below $1.2700.
Meanwhile, the EUR GBP trading pair was dragged down by 0.42% or 0.0036 points by the sterling. The pair currently trades at £0.8553 in today’s trading.
The GBP AUD pair, on the other hand, climbed up by 0.35% or 0.0067 points, ranging around AU$1.8971. And the GBP NZD exchange rate also rose by 0.37% or 0.0074 points, trading for NZ$2.0068.
Hopes for a Divorce Before Christmas
Fortunately for pound currency bulls, Johnson’s latest promise came in a good time and gave support in sessions.
Yesterday, the British Prime Minister Boris Johnson promised to bring fort the divorce before Christmas. With the Conservative Party marking their spot before the election, the Prime Minister confidently gives out the promise.
The governing Conservative Party bloc unveiled a new election manifesto promising more spending on the UK public sector. The Conservative also promised that there won’t be more extensions in the controversial EU-UK divorce.
Their new manifesto also had distinctions with the opposition Labour Party as they vow no more new taxes in Britain.
This gives them an edge to some as the Labour Party promises taxes on the upper class and companies. The opposition will use the taxes to fund major projects and the expansion of the state.
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