The GBP/USD pair continues growing slowly; all visible risks have already been included in prices.
The British Pound is slowly trading to the upside against the USD on Tuesday. The current quote for the instrument is 1.2920.
According to the results of the latest survey from Survation, 41.5% of those surveyed are ready to vote for the Conservative Party, and 40.5% - for the Labour Party. The difference between the numbers is now very critical because in early May it was about 20%, but then started to decrease quickly.
There is a significant risk here, because during elections the population’s votes may be divided unexpectedly, which is not good for the current Prime Minister, Theresa May, and those who support her. This, in its turn, may result in problems with the Brexit procedure.
However, we can see that the Pound buyers consider this risks as insignificant.
The statistics published this morning by the BRC showed that the Consumer Spending decreased significantly in May as well as the Retail Sales. It’s not the worst report that might have been, but the numbers are pretty logical: the inflation goes up and the salary growth is way behind it. Under such circumstances, consumers feel very uncomfortable. It’s not the best signal for the Pound, but right now the market’s attention is focused on the politics.
RoboForex Analytical Department