GBP/JPY: Mixed polls keep traders guessing ahead of the UK election
|- GBP/JPY extends the previous day’s losses while being near to Tuesday’s multi-month top.
- UK election polls support Tory victory but the lead over opposition Labour Party seems to raise alarms.
- All eyes on the British election and trade headlines.
GBP/JPY drops to 143.25 amid Thursday’s initial Asian session. The quote has been volatile off-late as the United Kingdom (UK) is a few hours away from the key general election.
Recent poll results from Savanta/ComRes surprised markets by showing only five-point lead of the ruling Conservatives over the opposition Labour Party. Even so, majority of the top-tier forecasters, like YouGov, Kantar and Opinium, show near 10 points’ lead of the Tories. It’s worth mentioning that the threat of a hung parliament is also alive as recent polls have shown a receding the majority of the Prime Minister (PM) Boris Johnson-led Conservatives.
Elsewhere, uncertainty surrounding the phase-one deal between the United States (US) and China keeps the risk tone heavy. The latest headlines from China’s Global Times suggest further grinding with CNBC conveying the dragon nation’s demand for December 15 tariff removal for further talks. However, Reuters relied on sources while saying that US President Donald Trump will today meet the top trade advisers to discuss the tariffs that are still on cards to be levied on December 15.
With this, the US 10-year treasury yields remain around the weekly low of 1.79% while S&P 500 Futures turns negative to 3,143.
Today’s UK election becomes the key for the Brexit proceedings as it was the PM’s aim to get Parliamentary majority behind taking this political stunt. If he fails, the future of dealing with the European Union (EU), not to forget the Brexit itself, will be in the danger. The British voting begins from 07:00 GMT and closes at 22:00 GMT on Thursday. The top broadcasters will roll out their exit polls as soon as the voting ends.
Technical Analysis
The lower high formation since the last three days drags the quote slowly towards a three-week-old rising trend line around 142.00. Though, an upside clearance of the monthly high, close to 143.70, also crossing the late-March low near 143.82, can propel the Bulls towards 145.00.
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