The pound headed for a fourth month of gains against the euro, reflecting growing confidence in the market that the Conservative Party will be able to secure a majority in the U.K.’s December election.
Sterling outperformed all major currencies after a much-anticipated poll released Wednesday evening suggested that Boris Johnson’s party is on track to win its biggest mandate since the 1980s. That is the best scenario for investors betting on the pound as it could end the political impasse over Brexit.
The pound pared gains after touching a six-month against the euro, to trade at 85.11 pence by 9:00 a.m. in London. It is heading for monthly gains of 1.2%, in the longest winning streak against the common currency since 2015. Against the dollar, the pound gained 0.2% Thursday to $1.2943.