Pound hits 31-month high against the euro on Tory win predictions – business live

Rolling coverage of the latest economic and financial news

7.59am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Latest Westminster voting intention (2-3 Dec)

Con – 42% (-1 from 28-29 Nov)
Lab – 33% (-1)
Lib Dem – 12% (-1)
Brexit Party – 4% (+2)
Green – 4% (+1)
Other – 6% (+1)https://t.co/JKgmm8lfYQ pic.twitter.com/HcqiuNeOGt

Related: Boris Johnson sets out plans for first 100 days if he wins election

The pound broke to the upside yesterday, as President Trump came and went while managing to avoid courting controversy over the NHS, and by virtue of that putting Boris Johnson in a difficult spot.

As a result of that currency markets appear to be starting to price out the prospect that Labour might win a majority at next week’s election. Having been so negative on the pound for so long, markets are starting to believe in the prospect that we could well start to see the prospect of an orderly withdrawal from the EU in the next two months, and thus short positions are starting to get squeezed out, sending the currency to its best levels against the euro since before the 2017 election.

Continue reading…

Leave a Reply

Your email address will not be published. Required fields are marked *