Sterling turmoil as polls split over election 2017 result

Pound recovers after threat of hung parliament

The US dollar index edged up 0.1 per cent to 97.420, holding well above last week's 6-1/2-month low of 96.797.

The further drop comes after a YouGov poll conducted for the Times showed the Conservative's lead is down to just 3%.

The newspaper, which publishes YouGov's regular opinion polls, said the new election model was based on voting intention data collected over the past week which put support for the Conservatives at 42% with Labour on 38%, a narrower gap than any recent polls.

However, one must consider that in a small time span it is very hard to correctly predict the outcome as the snap election was called only in April.

The YouGov results suggest their team expect a higher turnout among young people, who are more likely to vote Labour, but if their projections are wrong the Conservatives will secure a comfortable win.

Labor, the largest opposition party, is projected to gain about 30 seats, according to the first forecast based on individual constituencies rather than national vote shares, putting the Conservatives 16 seats short of a majority in parliament.

Mr. Shakespeare said the figures could change dramatically before June 8.

If the YouGov model turns out to be accurate, May would be well short of the 326 seats needed to form a government tasked with the complicated talks, due to start shortly after the election, on Britain's divorce from the European Union.

The poll is the latest to show a narrowing lead for the prime minister.

"Recently we've been relatively agnostic about sterling, but have now made a decision to underweight the currency for the next couple of weeks, in case the depreciation accelerates". The best case scenario for the Conservatives would give the party as many as 345 seats, 15 more than it now holds, while a bad election night could result in just 274 seats for May. What these numbers can't predict is whether the million new young voters, who are now polling at 69% for Labour, will swing a few more seats in Corbyn's favour.

"I have the plan for the Brexit negotiations but I've also got a plan to build a stronger and more prosperous Britain and I'm confident we can do that because I believe in Britain and I believe in the British people".

Sterling fell more than half a percent against the USA dollar to $1.28.

With one week to go until voters go to the polls, the Tories hold a nine-point lead over Labour. Fast forward a month and a series of political blunders and a populist Labour manifesto has seen the lead shrink to just 5 points and a real prospect of a hung parliament that could force another coalition government.

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