The British pound has hit its highest level ($1.2951) in almost two weeks against the United States dollar on Tuesday before bouncing back to trade at 0.1% lower reaching $1.2895 by 1606 GMT.
Investors are still expecting for the victory of the Conservative party in the general election on Thursday. Surveys and polls have shown a strong possibility that Theresa May’s party would win the majority of the votes. This sense of optimism strengthens the British currency. Investors are convinced that a victory for the current prime minister will strengthen her position in the country’s exit talks with the European Union, which is due to start later this month.
Oil prices dropped on Wednesday. Brent crude futures were traded around $50 per barrel as the markets remained oversupplied. Brent crude futures LCOc1 closed at $50.08 per barrel, 4 cents lower in comparison to the last close. In fact, Brent is 7% below its open on May 25, when OPEC said they would extend their oil output cuts through the first quarter of 2018.
United States West Texas Intermediate crude futures were traded at $48.14 per barrel, which is by 5 cents lower from their previous close and 6% below their May 25th open.The ongoing price drop of oil is caused by the current fuel glut that exists despite the pledge by OPEC and other producers to cut almost 1.8 million barrel per day.