As we are getting closer to the June 8, date of UK election, sterling is affected more by election polls than economic news. In a latest YouGov poll, which predicts that the Conservatives will lose their Parliamentary majority. A decreasing gap between Conservatives and Labour party is weakening sterling as we noted here.
Shortly after the poll have hit the wires, GBPUSD dropped dramatically below 1.28 level.
GBPUSD dipped down below the 1.28 level but now it starts to recover. Source: xStation5
When UK Prime Minister Theresa May decided to call a snap election to strengthen her parliamentary position probably did not expected that things can go so wrong. As we noted earlier, tendencies in polls are not favourable for Conservatives and latest YouGov poll showed its true.
Among the G10 currencies, GBP is the weakest, now down by 0.34 percent but recovering fast.
GBP is now the weakest currency among G10 basket after latest polls predicting that Conservatives will lose its majority in the Parliament. Source: Bloomberg
We would like to remind you our latest technical signal on GBPUSD here.