Pound falls below $1.28 on UK hung parliament fears – business live
A new opinion poll suggesting that Britain could be left with a hung parliament next week has knocked the pound, and raised fears of a new currency crisis.
Sterling fell below $1.28 after a YouGov poll, published in The Times, suggested that Theresa May could be left 16 seats short of an overall majority.
This prediction has caused some alarm in the foreign exchange markets, says Naeem Aslam, chief market analyst at Think Markets:
In the currency market, it is the British Pound which has attracted the most attention as the latest polls from YouGov shows that the big gamble by Theresa May could cost her majority lead in parliament. This is not something which she has pictured but again, the same story goes for David Cameron when he took the gamble for the Brexit vote. The YouGov poll shows that her party could lose as much as 20 seats and Labour could gain nearly 30 additional seats. So much for all the rhetoric “making her hand strong in the parliament”.
This has taken a toll on the British pound, and it has lost ground against a basket of currencies.
The pound vs the dollar since 10pm last night Photograph: Thomson Reuters
Aslam believes the pound is vulnerable to further losses too:
Tonight: we reveal YouGov’s first seat by seat projection of the campaign – suggests Tories fall 16 seats short of overall majority pic.twitter.com/8ouPRHTZ7m
YouGov’s forecasts is controversial, though, as polling companies don’t usually produce these kind of seat-by-seat projections.
And The Times itself admits that the estimates has plenty of wiggle room, saying:
But still, it’s enough to get traders jittery…..
The pound is trading below $1.28 this morning as new poll suggests Theresa May could fall short of a majority. AB9 #GE2017 #GBPUSD