Pound Rallies On Hopes Of Conservative Win

The pound rose sharply against its major counterparts in early European deals on Thursday, as recent opinion polls give a clear majority for Boris Johnson's Conservative party at next week's general election, enabling him to pass Brexit deal by January 31.

Recent polls showed a solid lead for the Conservatives, raising the prospect of a majority victory in the upcoming general elections.

Yesterday, Johnson unveiled his agenda for the first 100 days if he gets a majority at the general election.

He pledged that the withdrawal agreement will be put back before Parliament ahead of Christmas to deliver Brexit on January 31.

Other measures include a budget in February that would raise the national insurance threshold from £8,632 to £9,500.

In economic releases, U.K. car sales declined in November as weak business and consumer confidence along with economic uncertainty weighed on demand, data published by the Society of Motor Manufacturers and Traders showed.

New car registrations decreased 1.3 percent on a yearly basis to 156,621 units in November.

The currency has been trading higher against its major counterparts in the previous session, except the euro.

The pound appreciated to 1.3148 against the greenback, its biggest since May 6. The pound is seen locating resistance around the 1.33 level.

The pound spiked up to 143.19 against the yen, a level unseen since May 6. Further rise may find the pound testing resistance around the 147.00 level.

The U.K. currency firmed to near a 7-month high of 1.2999 against the franc, from Wednesday's closing value of 1.2953. If the pound rises further, 1.32 is likely seen as its next resistance level.

The pound strengthened to 0.8430 against the euro for the first time since May 2017. Next immediate resistance for the pound is likely seen around the 0.82 level.

Data from Eurostat showed that Eurozone retail sales declined for the second straight month in October.

Retail sales decreased 0.6 percent month-on-month in October, bigger than the 0.2 percent fall in September and the expected drop of 0.5 percent.

Looking ahead, U.S. and Canadian trade data for October, weekly jobless claims for the week ended November 30 and factory orders for October as well as Canada Ivey PMI for November are scheduled for release in the New York session.