Published: 05/07/2024 By ECAP
The British Pound held its ground this morning as the UK's Labour Party secured 410 out of 650 seats in parliament. This result has provided Labour with a majority of around 170 seats, ending 14 years of increasingly tumultuous Conservative-led government. Ultimately, foreign exchange analysts maintain a broadly constructive tone with regard to the Pound's outlook, anticipating further gains amidst an improving economy and the prospect of closer trade relations with the EU under a Labour government.The Euro continues to struggle in attracting investor support following an unexpected decline in the latest German factory data. In fact, orders fell by 1.6% on a monthly basis in May, declining for a fifth consecutive month and also missing market forecasts of a 0.5% rebound. Elsewhere, investors seem to be avoiding placing any aggressive bets on the single currency ahead of Sunday’s second round of French elections.
The U.S. Dollar sank to three-week lows in yesterday’s holiday-thinned trading session as growing expectations of interest rate cuts dented the greenback. Looking forward, focus is now squarely on key nonfarm payrolls data, due later today, for more cues on interest rates. The data is expected to show an increase of 190,000 new jobs, down from the previous reading of 272,000.
Data supplied by GC Partners