LONDON, Nov 12 — Sterling was softer against the dollar and nudged down from six-month peaks against the euro today, a day after racking up firm gains after the Brexit Party said it would not contest previously Conservative held seats in an upcoming election.
The focus for now turned to the latest economic data, with British jobs numbers due out at 0930 GMT. Economists polled by Reuters expect the unemployment rate held steady at 3.9 per cent in September.
In early trade, the pound was down 0.15 per cent at $1.2830 (RM5.31).
It rallied as much as one per cent yesterday after Brexit Party leader Nigel Farage said he did not want anti-Brexit parties to win, so was standing down candidates in seats won by the Conservatives in 2017.
The move was seen as a significant boost for Prime Minister Boris Johnson ahead of the December 12 election. Sterling jumped to six-month peaks against the euro at 85.62 pence yesterday but was a touch softer today at 85.88 pence.
If the Conservatives win a majority, the pound could bounce three per cent, a Reuters poll found. Bookies now say a Tory majority is the odds-on favourite.
Jim Reid, a strategist at Deutsche Bank, said that while the Brexit party news was positive for the ruling Conservative Party, it may only bring an additional 10-15 seats.
“So, helpful to the Tories rather than game changing,” he said in a note.
“The Brexit Party have struggled for momentum in this election and the risk to them is that this indirect support for the Tories in nearly half the seats confuses their message in seats they are still fighting in.” — Reuters
