The Pound has managed to claw back most of its losses against the Euro and Dollar after a fall in the rates yesterday afternoon. Against the Euro the Pound has managed to clear 1.17 and 1.30 again against the Dollar. This is around 0.4% below Sterling’s recent 31 month high versus the single currency.
It seems that the Pound had weakened off as the poll gap between the Conservative party and Labour Party narrows. The gap between the two main parties now stands at 10.6%, close to the 10.0% lead that’s traditionally needed to grant the winning party a majority of MPs in Parliament. It’s thought that, if next week’s vote isn’t decisive, the UK’s Brexit limbo may continue.
Sterling is still supported as markets factor in a 64% chance of a Tory win. Investors will want a single political party to win next week’s election, because it’s thought that this will contribute to the UK’s economic and political stability, and Brexit might be resolved faster.
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