Pound to euro exchange rate - sterling climbs back as election campaign is suspended
POUND sterling has climbed back against the euro after the general election campaign was suspended in the wake of the Manchester terror attack tragedy.
New York Stock Exchange silent for victims of Manchester attack
The pound has climbed back to €1.16 after dipping to a monthly low of €1.15 just yesterday.
As Britain mourns over the horrific events seen in Manchester at an Ariana Grande concert on Monday night, the national election campaign has been put on hold.
Prime Minister Theresa May was the first to suspend campaigning quickly followed by Labour leader Jeremy Corbyn and the Lib Dems.
The SNP postponed their manifesto launch in Scotland and the Ukip manifesto launch in London has also been delayed for a later date.
Pound to euro exchange rate - sterling has climbed back as the election campaign is suspended
Political leaders and parties who have been fiercely fighting each other over recent weeks ahead of the June 8 election came together in unity in the wake of the terror attack.
The suspension in campaigning had a flow-on effect for the pound against the euro and the US dollar as the currency had previously been volatile to swings in the polls.
TorFX currency analyst Laura Parsons said: “The Conservative manifesto, and particularly policies like the so-called ‘Dementia Tax’ resulted in a marked decline in the party’s lead in the polls.
Pound to euro exchange rate - sterling has climbed to €1.16 after dipping to €1.15 yesterday
“Prior to the manifesto’s publication, the Conservatives had a 20 point lead against Labour. By Monday that had fallen to a 10 point lead.
“As it’s believed that a landslide victory for the Conservatives could improve the UK’s Brexit negotiating power with the EU, signs that the outcome might not be as clear cut as previously expected triggered GBP/EUR losses.”
Dramatic shifts in the polls are unwelcome to the markets as they spell more uncertainty in an already volatile political climate.
Michael Hewson, chief market analyst at CMC Markets UK, said: "Currency traders reacted to the sudden narrowing of the opinion polls over the weekend in favour of the Labour party, as a result of the rather botched attempt to try and deliver a different approach to the ongoing problem of social care in the Conservative manifesto.
Pound to euro exchange rate - sterling remains volatile to shifts in the polls
Investors are assumedly shaken by the events in Manchester
"For a prospective government that wants to deliver a message of strength and stability, the events of recent days have served to give the impression of being weak and wobbly, not a particularly good look when politicians in Europe are watching from afar."
Despite climbing back slightly against the euro, the pound is still struggling to get back to monthly highs of €1.19.
Yesterday the UK currency dipped to eight-week lows as the world reeled from the terror attack tragedy.
Connor Campbell, financial analyst at Spreadex.com, said: "Investors are assumedly shaken by the events in Manchester."