Belfast Telegraph

Pound hovers at 87p against euro as polls reveal mixed views on election outcome

By Colm Kelpie

Mixed opinion poll results dented the pound yesterday as fears over the prospect of a hung parliament receded and Prime Minister Theresa May looked to be gaining ground over Labour.

Sterling plunged in the wake of a YouGov poll showing that Mrs May's once commanding lead had been wiped out and the Conservatives would fall short of the required seats for an overall majority.

But a second poll, released just hours later, had her lead at 15 percentage points, giving the pound some respite.

Still, sterling hovered just over the 87p mark against the euro, highlighting investors remain jittery.

Investec Ireland predicted more volatility to come ahead of the general election on June 8.

"It's worth remembering that polling figures have been varying widely in the past few weeks, and also that polls significantly overstated Labour's position heading into the last general election," it said, in a note to investors.

"If nothing else, the wide range in polling numbers will continue to boost uncertainty and keep the pound weaker as we head towards next week's vote."

The pound has reversed nearly half of its 4% gain since Mrs May called the election. Sterling dropped last week, rounding off the worst week this year.

It is now tipped for weeks of volatility as investors question whether Mrs May will achieve the increased majority the market had in effect priced into the pound in recent weeks.

Belfast Telegraph