FX Update: The pound rallied to new highs
FX Update: The pound rallied to new highs as two new polls show the Conservative party extending its lead over Labour. The late debate between PM Johnson and Labour's wannabe PM, Corbyn, was considered a draw, too, according to a poll by YouGov, suggesting that, with three days to go until the UK general election, there is now little change that Labour can close the popularity gap. A poll by BMG found support for the Conservative up a point, and Labour down a point, while a Survation poll found support for the Conservatives up 2 points, and support for Labour down two points. Politicos poll tracker has the Conservatives at 43% support and Labour with 33% support, unchanged over the last week. The Tories lead allows for a margin of error, as a lead of anything over 7% suggests an outright majority at the election. Cable rallied a fresh eight-month high at 1.3181, while EUR-GBP dropped to a 31-month low, at 0.8393. Elsewhere, the other dollar majors and associated cross rates have been holding within their respective Friday ranges. The narrow trade-weighted USD index (DXY) is little changed after rallying nearly 0.5% on Friday following the solidly above-forecast U.S. November jobs report. EUR-USD concurrently settled around 1.1050.60, after dropping on Friday from levels above 1.1100. USD-CAD consolidated around 1.3250 after surging by about a big figure on Friday to a 1.3270 peak, while AUD-USD has settled after rotating lower. Weakness in Chinese export data cast a pall over markets, though most Asian stock markets still managed to eke out gains. Upwardly revised Japanese Q3 GDP data provided an offset. The New Zealand dollar steadied after recent strong outperformance. Two NZ banks, ASB and BNZ, raised their GDP forecasts for the antipodean economy. Prime focus this week will be on the U.S.-China trade front, with the U.S. deadline to hike tariffs on a further $160 B of imported Chinese goods due to take effect on the upcoming Sunday.