The pound hit its highest level against the euro in over two years on Wednesday on increasing confidence that the general election on Dec. 12th will return the Conservative Party to power with a healthy majority. It also hit a six-month high against the dollar
Opinion polls have consistently put Boris Johnson’s Tories ahead of the left-wing Labour Party by a margin of between 9 and 12 points. Under normal circumstances, that would guarantee it a majority of seats in the House of Commons. However, traders have held back from betting on such an outcome in recent days, wary of a late surge by Labour or Liberal Democrats, which could create another ‘hung’ parliament and thwart Johnson’s plans to complete Brexit.
GBP/EUR at 1.1810, down from a new high of 1.1815, the highest since May 2017.
GBP/USD at $1.3082, the highest since May 2019.
U.K. 10-Year Gilt yield at 0.72%, up 5 basis points vs Tuesday.forex.com
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