GBP/USD eases to a session low of 1.2863
- UK election poll shows Labour trailing by just 7 points
- UK election: Conservatives 43% (-2), Labour 32% (+5) - Kantar poll
It is a bit of a choppy start for cable to start the week with the pair now easing back lower after the gains seen in trading yesterday.
Price is now at a session low of 1.2863 as voting intentions appear to be indicating a narrower race between the Conservatives and Labour.
Now, the issue I have with opinion polls is that you can interpret them as how you will. Those who are supporting the Conservatives will argue that the polls against them are biased/skewed and for Labour supporters, vice versa.
But as traders, we can only trade the sentiment that matters to markets and it looks like there is some doubt creeping in or it could just be a technical rejection we are seeing as sellers lean on the key near-term levels highlighted above.
All that said, keep an eye out on the YouGov MRP poll release tomorrow at 2200 GMT.
I reckon that will be one to really give markets a better sense of what to expect and perhaps nullify the noise we're seeing over the past two days from the other polls.
If you didn't catch my post earlier, the YouGov MRP poll accurately predicted the hung parliament result in the 2017 election. As such, it may well be a useful indicator that broader markets may look into in the run up to 12 December.
