After a weekend terror attack in London, the Pound fell in Asia trading before the nation goes into a quick election.
The Sterling declined 0.3% against the Dollar as Leveraged clients are awaiting the results of new polls taken after the incident. The third attack in the UK in less than three months comes before the June 8 election. The Pound has been knocked over the past two weeks as polls have depicted a tightening race, raising the possibility of a hung parliament. The Pound traded 0.2% weaker at $1.2869 as of 9:44 a.m. in Tokyo and fell 0.5% in May after having rallied 4.6% in the previous two months.
According to Daniel Been, Sydney-based head of foreign-exchange research at Australia & New Zealand Banking Group Ltd, “On a slightly more medium-term basis we are still cautious on the Pound. Even once this week’s election is out of the way, there are still numerous uncertainties surrounding Brexit, in particular on where the common ground for negotiation is with Europe’s negotiating parties. At the same time, the economy is slowing.”