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Sterling up as latest poll shows comfortable win for May

• Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, GBP, Prime Minister, Sterling, UK, Uncategorised
• June 8, 2017
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The euro was little changed against the dollar today before a European Central Bank policy announcement and the pound rose to two-week highs as voting began in Britain’s election, with final polls pointing to a win for Prime Minister Teresa May’s party.

The ECB is not expected to make any changes to monetary policy, but traders will be watching President Mario Draghi’s statements for his assessment of the euro area economy.

The euro hit intra-day lows on Wednesday following reports that the ECB could cut inflation forecasts for the next three years. The report came after Draghi said last week that inflation remains subdued and still requires substantial stimulus.

Prime Minister Theresa May is on course to increase her majority in parliament in the British election, opinion polls showed on Wednesday, which would bolster her position in Brexit negotiations.

Markets remained cautious ahead of former FBI Director James Comey’s testimony to a Senate committee later on Thursday.

In written testimony released on Wednesday, Comey said that President Donald Trump asked him to drop an investigation of former National Security Adviser Michael Flynn as part of a probe into Russia’s alleged involvement in the U.S. presidential election.

Investors are fearful that the Trump administration may be further damaged by any revelations that could emerge during the testimony, which could dampen already flagging momentum for the White House economic agenda