Pound Advances As U.K. Local Election Results Show Backing For Conservative Govt.
10 May 2021 - 1:34PM
RTTF2
The pound climbed against its major counterparts in the Asian
session on Monday, after results from U.K. local and regional
elections showed support for the ruling Conservative Party.
Conservatives won the parliamentary seat for Hartlepool, which
has been held by Labour since its creation in 1974.
The Tories secured key victories in number of councils in the
West Midlands, in a sign of endorsement to the government's
coronavirus vaccination programme as well as the handling of
Brexit.
The pound's gain came despite the Scottish National Party's
victory in the parliamentary election, which could pave the way for
a second referendum on Scottish independence.
U.K. Prime Minister Boris Johnson has repeatedly rejected to
allow another referendum, setting up the possibility of a showdown
between his government and the Scottish administration.
The pound appreciated to a 4-day high of 0.8642 against the euro
from Friday's close of 0.8688. The currency is likely to find
resistance around the 0.84 level.
The pound jumped to 1.4071 against the dollar, its biggest level
since February 25. On the upside, 1.43 is possibly seen as its next
resistance level.
The pound was higher against the yen, at near a 5-week high of
153.31. The pair had closed last week's deals at 151.77. If the
pound rises further, 155 is likely seen as its next resistance
level.
The pound spiked higher to a 4-day high of 1.2674 against the
franc, compared to last week's close of 1.2587. Next likely
resistance for the pound is seen around the 1.28 level.
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