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After touching an almost one-month high after polls suggested that the Conservatives are set to win a majority at the December general elections, the pound was consolidating gains against the Norwegian krone during the Asian session.
Today’s trade will likely result in quiet markets as a result of the Thanksgiving break with US trading desks closed, in times with already low volatility in the markets through the month.
The pound posted significant gains after a much-anticipated YouGov poll suggested that Boris Johnson’s Conservative Party is set to win a 68 seat majority in the Parliament, allowing him to deliver on his promises of a fast Brexit.
Nevertheless, it’s not a smooth ride for the Tories from here: Johnson will meet with Donald Trump and NATO leaders in the English countryside next week.
Those familiar with Johnson’s politics fear that this meeting could wreck the election, especially after Trump’s earlier comments that access to the NHS for US companies should be a talking point after Brexit. Founded 71 years ago, the NHS is the second most important topic in the election campaign, just after Brexit.
The pound is mostly unchanged to slightly lower against the krone after hitting marginal highs of 11.89 yesterday. As of 7:20 a.m. London time, the GBP/NOK pair traded 11.8516.
While yesterday’s “shooting star” pattern suggests that sellers are ready to step in at the 11.90 resistance level that aligns with the upper triangle line, news and election headlines will still be a major driving force of the pair.
Yesterday’s low of 11.83 will likely act as a short-term support level for the pair, while a break above the 11.89-90 level will need a new catalyst and increased election optimism.
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