News & Analysis

Sterling price action continued to reflect political uncertainties

Sterling price action continued to reflect political uncertainties, setting out on a soft tone as the latest election polls continued to point toward a hung parliament. Comments from BoE's Barker about a possible negative GDP reading also weighed on the early sentiment. Overextended bearish technicals coupled with the largest monthly decline in the jobless claimant count since Nov 1997 provided the basis for a rebound above 1.5350 before drifting back to probe the mid 1.51 area.