Malaysia News: The pound is fighting back after a drop as investors digest the London Bridge terror attack

Isnin, 5 Jun 2017

The pound is fighting back after a drop as investors digest the London Bridge terror attack

Pedestrian cross London Bridge on Monday June 5.

LONDON — The pound is steady after briefly falling on Monday morning as investors reacted to the weekend terror attack in London Bridge and await the outcome of Thursday’s general election.

Sterling slipped around 0.5% in overnight trading on Monday before stabilising at around $1.288.

The currency has traded choppily in recent weeks as polls indicate a big narrowing in the race for Downing Street, with Labour closing in on the Tories to as little as 1% according to a Survation poll published on Sunday.

While the Conservatives still have a solid lead, the less predictable prospect of a Labour government negotiating Brexit has unsettled some investors.

The currency was down 0.05% at around $1.288 on Monday morning. Here’s how it looks at 8.18 a.m. BST (3.18 a.m. ET):

Investing.com

Here’s how it looks against the euro:

Investing.com

A morning note from Konstantinos Anthis, an analyst at ADS securities, said: “A comfortable win for Theresa May in the UK election would ease pressure on the pound, but if the Labour Party gains control of the Government this could impact the UK’s approach to Brexit, which would weigh heavily on sterling.

“As we move closer to the election the pound is expected to trade in a choppy manner as investors will be reacting to last-minute exit polls with the current range of 1.2800 to 1.2900 capping any short-term price action.”