Pound to tumble on election results

2 June, 2017

Pound to tumble on election results

The British pound is under pressure again today against the Euro as more polls released before election day show the opposition labor party closing the gap on Theresa May’s conservatives.

At 3.26pm (GMT) the British currency was trading at 87.04 against its European counterpart, down from 87.32 in yesterday’s close

A new YouGov poll that showed British Prime minister Theresa May ahead in the polls by 5 points just a few days ago, now shows ta gap of 23 points which is between the margin of error and clearly shows that May’s government is in danger of losing its grip on power,

“Recent polls indicate a potential scenario where Theresa May could be short of the seats required to form a Government, which has sparked concerns of political instability prior to the Brexit negotiations.” said FXTM research analyst Lukman Otunuga

Even better than expected manufacturing data out today is not causing any interest in the pound, as investors are weary of how far the currency could fall if there is an upset in the elections next week.

"I wouldn't say the data was particularly strong," said Alvin Tan, currency strategist with Societe Generale on sterling's limited reaction to the data,

"It's worth bearing in mind the bigger issue around sterling in the next couple of weeks is the election, not so much the economy."

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