Pound to euro exchange rate: Sterling flat ahead of election amid latest polls
THE pound has been hit by nerves ahead of the 2017 election, as one poll gives the Conservatives only a one-point lead over the Labour party, and with the result's predicted outcome subject to huge variations.
The pound has risen ahead of the 2017 election
Sterling initially lifted in morning trading just two days before the June 8 vote before falling against the dollar and euro to 1.2899 and 1.1441 respectively.
But investors appear to be largely shrugging off polls amid huge differences in predicted outcomes.
A new survey by Survation for Good Morning Britain has given Teresa May a one-point lead, a YouGov poll puts it at a four-point lead, while ICM has showed an 11-point lead to the Tories.
Markets are expecting a Conservative majority, and a different outcome from the election could cause significant turmoil, experts have warned.
But if Mrs May manages a convincing defeat of Jeremy Corbyn, sterling could jump even higher.
The pound is nearing 1.3 against the dollar
May warns of 'coalition of chaos' ahead of 2017 election
The pound has also gained against the euro ahead of the election
FXTM chief market strategist Hussein Sayed, said: "The pound managed to remain bid, despite the weaker than expected PMI data and conflicting poll outcomes.
"The latest polls indicate that the Labour party continues to narrow the gap on the Conservatives.
"YouGov showed a Tory lead of just four points as opposed to ICM which indicated an eleven-point lead.
"Whether Britons were seriously swayed in the aftermath of Saturday’s attack will be known on Thursday, but I think if the Conservatives manage to increase their lead it could potentially send GBPUSD above 1.3."
The dollar has also come under huge pressure today and fallen to its lowest level against the Japanese yen in six weeks.
It comes ahead of a testimony to Congress by former FBI chief James Comey.
The exchange could shine new light on Donald Trump's administration to Russia and threatens to throw the US president into another crisis.
Meanwhile the FTSE 100 dropped around 0.25 per cent off the back, as investors pause ahead of the election result.