The pound has taken a hammering across all of the major currencies just ahead of the long weekend. The mood has been unsettled in the UK over the last two weeks ever since those weak wage growth numbers suggested people would soon feel the pinch in their pockets. Now the UK general election is the driving force for sterling exchange rates.
This week has been particularly brutal for the pound after the conservative party U-turn on what has been dubbed the “dementia tax”. The rise of Labour in a recent poll this morning now sees the Conservative party losing the big lead it has had so far and this is having a very negative impact on the pound. The terrible attack in Manchester is also feeding its way into the election campaigns with terrorism and security an even bigger issue for voters.
Sterling has dropped almost 1% against the Euro and over 1% against the US dollar and has taken losses against all of the other major currencies. Those clients looking to sell Euros are looking at a good window of opportunity which may even improve depending on political developments over the weekend.
This weekend will inevitably see the political campaigns start to take off again and any well received noises from the conservative party could see the pound pick up the losses seen this week. The suggestion that young voters will vote Labour has clearly been a worry for the pound today and any suggestion that Jeremy Corbyn will pick up votes could see the pound weaken further.
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