The pound surged after Conservative David Cameron won a majority in 2015, in contrast with polls at the time. Cameron would later resign after the 2016 Brexit referendum.
For now, the pound is showing it’s “desensitized” to the shocks of terrorist atrocities, Innes wrote in a note on Monday.
Monday’s outsized gains for the peso, after Mexican President Enrique Pena Nieto’s party appeared to pull off a narrow victory in the election for governor of the country’s largest state, may be one early bellwether of the market-moving impact of such polls.
Comey to Testify
Fired FBI Director James Comey is set to testify before the Senate Intelligence Committee on Thursday about his conversations with President Donald Trump regarding allegations of Russian interference in the 2016 election.
The long-anticipated testimony may drive further moves in U.S. equities and the dollar in a reprise of market swings in May. Assets tumbled then on the news Comey had written a memo alleging Trump made a request to drop an FBI investigation into former National Security Adviser Michael Flynn.
The dollar dropped to levels not seen since the November election while the Dow Jones Industrial Average tumbled more than 370 points, Treasuries rallied the most since July and volatility spiked higher. The benchmark S&P 500 retreated the most since September.
This article was provided by Bloomberg News.