Traders of the Pound Sterling are concerned over the possibility of big swings as the general election process continues over the next several hours. For the Conservative party, the latest polls are startling, with some showing a statistical dead heat making a clear winner too close to call. Without a win for the Conservative and their leader, Prime Minister Theresa May, there is great concern that she will be unable to obtain the desired “upper hand” during Brexit negotiations. Implied volatility for the Pound surged above 30%, both against the Dollar and the Euro.
As reported at 11:08 am (BST) in London, the GBP/USD was trading at $1.2942, down 0.13%; the pair has ranged from a session trough of $1.29356 to a peak of $1.29783. The EUR/GBP was down 0.07% to trade at 0.8683 Pence; earlier the pair hit a session low at 0.8669 Pence while the peak for the trading session stands at 0.86931 Pence.
Comey Testimony in Focus
In the US, Dollar traders expect to see the greenback experience its own big swings as the nation’s attention will be riveted on the US Senate. Later today, James Comey, the former FBI director who was unceremoniously fired by Donald Trump, will await senators’ questions regarding any possible collusion between the Trump administration and Russia. Yesterday, Comey released a written testament on his most recent dealings with the President; he said that he released that in advance so that the senators could ask the most thoughtful and appropriate questions during the hearing.