Pound Sterling is the week’s best performing currency, enjoying gains of three-quarters of a percent against the Euro and one percent against the U.S. Dollar. Ahead of the weekend, currency traders will be digesting the results of local elections which suggest the Conservative Party have avoided a bloodbath.
GBP is the week’s best performing currency with a poor performance by Labour and the Conservatives in local elections likely to spur the two sides towards agreeing a Brexit deal.
The Pound’s advance accelerated late on Friday afternoon following comments from Labour leader Jeremy Corbyn that a deal on leaving the EU must be decided by the UK parliament soon.
The Pound-to-Euro exchange rate is quoted at 1.1751, 0.75% higher while the Pound-to-Dollar exchange rate is quoted at 1.3147, 0.80% higher.
The advance comes as the last of the local election results come through and the final tally suggests the UK’s two largest parties have little to smile about and everything to gain by putting Brexit behind them.
The overwhelming message coming in from both Labour and Conservative party sources, as well as political pundits, is that the electorate are deeply dissatisfied with the handling of Brexit by the two main parties.
At present the Conservatives appear to have lost 951 seats and lost control of 35 councils.
The Labour Party have meanwhile lost 9 councils and 110 seats, poor form for an opposition party that should be mopping up disaffected voters.
Using the vote tallies to project how a General Election might play out, it is estimated that Labour and the Conservatives would each command 28% of the national vote were the patterns repeated in a General Election.
“This is the second time Labour and Conservatives have been below 30%. This is a rejection of both the two largest parties,” says Sir John Curtice, the well-regarded polling expert, responding to the poll projections.
May has set next week as a deadline for the two sides to strike a deal.