- Posted by currencies in Rate Alerts
- May 26, 2017
- No Comments
The exchange rates are listed at the bottom of this article. Please note that the rates are for indication only. Contact us for live quotes.
Sterling fell on Friday after a poll showed a narrowing lead for British Prime Minister Theresa May over her opposition ahead of elections next month, while weakness in oil prices dragged on commodity-linked currencies.
In a sign that the June 8 election could be more closely contested than previously thought, a YouGov poll published on Thursday showed that the opposition Labour Party had cut the lead of May’s Conservatives to five points.
Sterling fell 0.5 percent to $1.2884, pulling further away from its May 18 peak of $1.3048, the pound’s strongest level since September last year.
The assumption that a landslide election win for May would strengthen her hand over hard-line Brexiteers in her ruling party and allow her to negotiate a smoother departure from the European Union, had been a source of support for sterling.
That view, however, has been challenged by recent opinion polls that showed a slide in the lead of the Conservatives.
The narrowing lead for May brings in the risk of a messier Brexit. We think the pressure is on here. We could see a significant move lower (in sterling) provided these uncertainties in the polls persist.