NEW YORK (Forex News Now) – The pound jumped against the dollar in fx trading Monday, after opinion polls showed the opposition Conservative party consolidating its lead ahead of Britain’s upcoming general election.
In early European currency trading, GBP/USD struck a seven-day high at 1.5497. Cable later eased to 1.5452, up 0.49 percent on the day.
Also Monday, Liberal Democrat leader Nick Clegg, who may become a kingmaker after the election, signaled that he would seek to form a government with the Tories in the event of the ruling Labour party coming in third.
In light of the current FX news, meanwhile, sterling is likely to touch support against the greenback around the low of April 6, 1.5129, and encounter resistance around the high of February 3, 1.607.
Tuesday’s forex news is likely to be dominated by the release of data on Australian producer price inflation and British wholesale and retail sales. U.S. Federal Reserve Chairman Ben Bernanke is also set to make currency trading news, during his testimony before the National Commission on Fiscal Responsibility and Reform in Washington.