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Asian Session Recap: Markets Shrug Off New U.K. Election Polls, North Korea’s Missile Launch

With not a lot of catalysts during the Asian session, forex traders concentrated on weekend headlines instead.

  • Chinese markets out on Dragon Boat Festival holiday

Major Events/Reports:

GBP retraces from last week’s losses

The pound gained against its major counterparts despite new election polls supporting a narrowing lead for Theresa May’s Conservative Party.

Remember that last Thursday the pound took a beating when YouGov published its report reflecting the Tories’ lead narrowing down to five points.

Last Saturday pollsters Opinium and ComRes published their own results, which reflect the first surveys since the Manchester attack last week.

Opinium showed May’s lead slipping from 13 to 10 points (Conservative’s 45% against Labour’s 35%)from a week earlier, while ComRes said that the Conservative Party’s lead had dwindled from 18 to 12 points (Conservative’s 46% against Labour’s 34%).

The pound mostly shrugged off the news possibly because, aside from the polls still showing a victory for May, they also hint that the voters’ opinions were influenced by the Manchester attack.

Major Market Mover(s):

GBP

The pound might have gapped lower against its major counterparts, but it soon went on an intraday uptrend despite the lack of major catalysts.

GBP/USD is up by 13 pips (+0.10%) to 1.2819, GBP/JPY is up by 23 pips (+0.16%) to 142.73, and EUR/GBP is down by 19 pips (-0.22%) to .8709.

Watch Out For:

  • U.K. banks out on Spring Bank holiday
  • No major economic reports on tap during the London session

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