Pound to 135

Sterling is bounding higher as Boris Johnson maintains a healthy lead in the polls in the last few days heading towards the elections. The latest data showing voters intentions puts Boris Johnson with a double-digit lead of 11.9 points ahead of Labour’s Jeremy Corbyn.

Traders are looking for the Tories to win by an overall majority. This is being seen to pave the way for Boris Johnson’s Brexit bill to pass quickly through Parliament, enabling the UK to leave the EU early next year with a deal in place. Conservative market friendly policies are also playing a part in boosting sterling. These are favoured over Jeremy Corbyn’s left leaning policies and the uncertainty that he brings to Brexit.

The leaders will be upping their game this week; concerns of a late surge for the Labour party aren’t materialising. A target of $1.35 is quite possible in the near term should a Tory win in the elections and Brexit fall into place.

Dollar eases on trade headlines post stellar NFP
On the other side of the equation, the dollar is easing after surging on Friday post NFP. 266,000 jobs wee created, smashing forecasts of 180,000. The strong labour market has cemented beliefs that the Fed will stay pat on rates in its policy announcement this week.

Trade headlines continue to impact trading. The dollar is broadly out of favour after President Trump called on the World Bank to stop lending to China, potentially rocking very already very fragile relations ahead of the 15th December deadline.

Level to watch
The pound is trading above its 200, 100 and 50 sma, in bullish trading. The RSI has also dropped back below 70 in another strong sign for pound bulls.
Resistance can be seen at $1.3181, prior to $1.3265, from March, before $1.3380, 2019’s high. On the downside support is identified at $1.31 prior to $1.3050 and $1.2985, November’s peak.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.