Blog


Sterling falls as latest poll shows PM lead is cut further

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × 2 =

What's Going On?

Currencies 4 You Limited is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House, Victory Way, Admirals Park, Crossway Dartford, DA2 6QD. Currencies 4 You's Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Ltd is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. Reference number: 900797. Ebury Partners UK Ltd is registered with the Information Commissioners Office, with registration number: Z209673X | Terms and Conditions | Privacy Statement | Careers