- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, election, EUR, GBP, No Deal, Prime Minister, Sterling, UK, Uncategorised
- November 13, 2019
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The pound was slightly weaker against the U.S. dollar on this morning and stable against the euro, as weak economic data, which should hurt sterling, is more than offset by supportive political developments in Britain.
Average weekly earnings rose at a weaker pace in the three months to September in the UK, but the pound continues to derive support from Monday’s news that the Brexit Party will not contest the seats the Conservative Party won in 2017 at the general election next month.
The move increased the chance that Boris Johnson will stay as prime minister and implement his deal to take Britain out of the European Union.
Optimism was further fuelled by a YouGov poll released yesterday showing Johnson’s Tories had a 14-point lead over the opposition Labour Party.
Also according to an opinion poll published by market research company Kantar on Wednesday the Tories have a 10-point lead over the opposition Labour Party, , ahead of next month’s election.
Support for the Conservatives stood at 37% compared with Labour’s 27%. The pro-European Union Liberal Democrats were on 17% and the Brexit Party was on 9%.
Kantar surveyed 1,165 people online between Nov. 7 and Nov. 11, before the Brexit Party announced it would not stand in seats held by Conservative members of parliament.
The pound is likely to remain well supported as long as the political news-flow pointing to a Tory majority continues.
British inflation fell to its lowest level in nearly three years in October, official data showed, giving households a bit of a spending boost before next month’s election.
Consumer prices rose at an annual rate of 1.5% compared with 1.7% in September as a regulator’s tariff cap pushed down electricity and gas prices for 15 million homes.