Currency Market Analysis

Jun 09, 2017 | Currency Market Analysis

Global Themes

GBP hits two-month lows as exit polls point to hung parliament

The GBPSGD has fallen to two-month lows as early exit polls signal Theresa May’s Conservative party might be unable to form a majority.

The UK election results have filtered in from 5.00am with the first few seats indicating the UK’s government’s strategy to increase its parliamentary majority might have failed.

The GBP was heavily sold on the news but has since recovered some losses.

The GBPSGD was down 1.6% this morning.

Comey, ECB

The USDSGD saw small gains overnight as markets remained cautious on the US dollar as former FBI director James Comey testified to Congress.

Ongoing US political tensions have seen the US dollar weaken this year despite the US Federal Reserve 's move to raise official rates.

In Europe, the focus was on the European Central Bank's policy statement.

The ECB raised growth forecasts but lowered inflation forecasts. The euro weakened.

Chinese CPI

Today’s major data comes from Chine with inflation results due at 9.30am (AEST).

A stronger number might be seen as a positive for financial markets.

Otherwise, markets will closely watched the UK election results with a final result expected around 3.00pm.

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