Following a three day rally and reaching a 2.5 year high against the euro, the pound weakened slightly on Friday ahead of the live television debate between Jeremy Corbyn and Boris Johnson. Despite this, it stayed near previous highs as a Conservative majority was still thought to be the most likely outcome. This morning, the pound is strong as the latest poll shows that the Conservative Party have extended their lead to 14 points ahead of Labour.
At 7am on Thursday, the polls will open for the first December general election since 1923. With Brexit hanging in the balance, the result may determine the direction and future of this country for decades to come. The markets have priced in the result of a Conservative majority, but we cannot rule out the possibility of a hung parliament – with the peculiarities of ‘first past the post’ and a real chance of tactical voting, it could be a very close call.
Boris Johnson has been targeting Leave-voting, Labour-held seats in a final push to win over voters, whilst shadow Chancellor John McDonnell will promise to deliver a Budget to “end austerity”, in a speech setting out Labour’s priorities.
This week, we’ll also see balance of trade and GDP figures for the UK.
