The Pound lost close to -0.30% on Monday after opinion polls showed a narrowing lead for Prime Minister Theresa May and the conservatives ahead of next month’s elections. Adding to the more pessimistic outlook are growing demands from the European Union for a so-called divorce payment they have pegged at upwards of €100 billion. The bearish sentiment was accentuated after news emerged of an explosion at an Ariana Grande concert in the English city of Manchester. Police report that at least 19 are dead and over 50 injured in what is being treated as a “lone wolf” attack.
Meanwhile, the Euro is rallying on Tuesday after German Chancellor Angela Merkel said the common currency was "too weak." Merkel’s comments provided fresh momentum for the Euro, which has been rising since the French presidential election earlier this month. EURGBP is trading close to a 2-month high around 0.8660.