Sterling rises as investors ignore the polls
- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, GBP, Prime Minister, Referendum, Sterling, UK, Uncategorised
- May 30, 2017
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Sterling rose against the dollar on Tuesday, with investors shrugging off opinion polls showing British Prime Minister Theresa May’s lead over the Labour opposition narrowing less than two weeks before a general election.
The pound has risen nearly 4 percent since May called a snap election for June, as investors bet a then-predicted landslide majority for May would result in a stronger hand in negotiating Britain’s exit from the European Union.
Polls taken since the opposition Labour Party and May’s Conservatives released their election manifestos have shown Labour catching up, worrying investors and pushing the pound down almost 2 cents last week.
While the latest polls confirm the narrowing trend, they still show May’s Conservatives with a solid lead, leaving some keeping their bets in place.
If the polls are to continue to narrow next week we could obviously drop down another couple of big figures.
Our best-case scenario is the Conservatives will ultimately win a larger majority – which could see cable (sterling/dollar) pop back towards the $1.30 level following the election.
In a televised debate on Monday, May said she would walk away from divorce talks with the European Union without a deal if she had to, but Labour leader Jeremy Corbyn said he would make sure an agreement was reached if he won power.
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