The Pound exchange rate weakened sharply to the 1.33 level against the Euro and fell against its other major peers as investors focused upon the general election. The vote is set to be the most unpredictable in decades and with the outcome far from certain, the markets are concerned over potential political uncertainty negatively influencing the UK economy.

US Dollar

The US Dollar was stronger against the weakened Pound, but was trading at a 2-month low against the Euro and was weaker against most other major peers. The ‘Greenback’ remained under pressure from a report showing that the US private sector added just 169,000 jobs last month. The figure was well below the 200,000 expected.

The Euro

The Euro gained to a 3-month high against the Pound and advanced to a 2-month high against the US Dollar as the UK general election and disappointing US jobs data weighed upon Sterling and the ‘Greenback’. Further gains were held in check as data out of France and Germany came in worse-than-forecast.

Australian Dollar

The ‘Aussie’ softened against the US Dollar after domestic data showed that construction activity contracted in April and unemployment rose to 6.2%. The disappointing data raises the likelihood that the Reserve Bank of Australia will cut interest rates on Friday.

New Zealand Dollar

The New Zealand Dollar, like most other currencies, was higher against the Pound as markets focused on the UK general election. Against the US Dollar, the ‘Kiwi’ is little changed as a lack of domestic data and softer-than-forecast reports from Australia offered little support.