Britain’s pound fell back below $1.30 today after a pair of polls over the weekend showing Prime Minister Theresa May’s opinion poll lead falling back into single figures ahead of next month’s election.
Sterling has risen in the past month, in part on the assumption that a May landslide would strengthen her hand over hardline Brexiters in her ruling Conservative Party and allow her to negotiate a smoother departure from the European Union.
Her perceived weakness on the campaign trail, and a mixed reception for last week’s election manifesto, has underwritten a recovery for the opposition Labour Party.
A Survation telephone poll published today showed May’s lead halving to 9 percentage points, with Labour up 5 points and the Conservatives down 5.
Another bad PR week … and the Tories’ lead over Labour could fall further into the low single figures, which could encourage sterling selling.
In morning deals in London, the pound was down just over half a percent, bypassing lows hit early in the Asian session to trade as low as $1.2967. It also dipped 0.1 percent to 86.09 pence per euro.