By CountingPips.com
The US Dollar has traded stronger versus its European currency rivals today in forex trading while being mixed overall against the other major currencies. The dollar has been gaining ground versus the euro, British pound, Swiss franc and Japanese yen while losing ground against the Australian dollar, New Zealand dollar and Canadian dollar, according 
currency data by Oanda.
The British pound sterling plummeted versus the dollar earlier today in fx trading after an opinion poll was published showing that this year’s general election in Britain could produce a hung parliament and after news was reported that Prudential PLC would buy a part of AIG (Asian Operations).
Today’s action was an acceleration of the pound’s recent downtrend which has seen the pound fall for five out of the last six weeks to the dollar while also falling to the euro for three straight weeks.
A divided parliament may present a new challenge for Britain’s economy as the political uncertainty could hamper the navigation out of a fragile economic state. The news prompted heavy selling of the pound, dropping the currency to its lowest exchange rate versus the dollar in ten months.
GBP/USD 1-Hour Chart – The GBP/USD fell all the way to the 1.4784 level before paring some of the losses and climbing back to trading around the 1.5000 level.
Euro rises vs Pound
The Euro spiked against the pound today as the EUR/GBP touched a high of 0.9150 in trading before coming back to the 0.9050 level. The EUR/GBP has now surged from the 0.8682 level to the 0.9050 level in just over two weeks.
EUR/GBP Daily Chart – The Euro broke out of its downtrend on the daily chart versus the British Pound last week in forex trading and spiked higher today. The MACD indicator has now turned positive while this pair trades at just about the 70 level on the RSI.
