Pound sterling falls further after latest poll slashes Conservative lead

Share

Sterling has been bearing the brunt of increasing market tension in the build up to the election and dropped to a five week low on Wednesday morning, after a YouGov poll showed the ruling Conservative party will fall short of winning a majority.

It is worth emphasising how much there remains to play for in the last week of the campaign.

Jeremy Corbyn as United Kingdom prime minister could see a "Trump effect", they point, where the likelihood of increased government spending takes pressure off the Bank of England, pushing short interest rates higher on the expectation benchmark interest rates will also start moving up sooner than initially thought - such a move would likely strengthen sterling.

It shows the Conservatives on 42 points and Labour close behind on 39.

The opposition Labour Party could win 257 seats, up from 232 seats in 2015, YouGov said. They believe it is normal, between elections when there is nothing at stake, for polls to show wide gaps between the parties. "It's actually about getting out and about, meeting voters and hearing directly from voters".

The post-Brexit decline in the pound has raised the cost of imported raw materials many of these companies need to produce the goods they sell to us, and there has been pressure to pass on these higher costs to the final customer.

Labour sources have also poured cold water on the narrowing polls.

More news: Champions League final: Bale hails Madrid's history boys
More news: Man set alight as death toll rises
More news: Terror attack on London Bridge leaves 6 dead; police shoot 3

Previous opinion polls suggested Prime Minister Theresa May's party would increase its majority of 17 seats.

"I wouldn't be surprised if we held onto some southern marginal seats against the Tories but lost some other safe seats with 6,000 vote majorities elsewhere", they said.

The fact that dozens of seats are not behaving the way they were expected to will undoubtedly make uncomfortable reading for Prime Minister Theresa May.

When May stunned politicians and financial markets on April 18 with her call for a snap election, opinion polls suggested she could emulate Margaret Thatcher's 1983 majority of 144 seats or even threaten Tony Blair's 1997 Labour majority of 179 seats.

Elsewhere, the Liberal Democrats are on 7 per cent from 8 per cent, UKIP remain on 4 per cent and votes for other parties are at 8 per cent from 7 per cent.

The original policy does not appear to have been popular, 59.8% of people who responded to the survey said they did not support the original uncapped plan, that would have seen anyone who required social care, either in their own home or in residential care, have to use any assets over £100,000 to pay.

Voters go to the polls in just one week's time.

Share