The U.K. pound declines after the poll showed that the forthcoming election in Great Britain may end without a party holding a parliamentary majority and being strong enough to resolve the budget deficit, because of that the concern arose that the economic recovery in the U.K. may slow and the British economy may lag behind U.S.’s.
Previously the U.K. currency has gained as the survey showed that the Conservative party led over the Labor party by 10 percent, giving a hope that the new government will be strong enough to deal with the budget deficit without help from other parties. But this hope was shattered as the results of the new survey showed that the Conservatives don’t have that much support. The sterling is likely to move according to results of opinion polls till the election.
GBP/USD traded at 1.5195 as of 15:04 GMT down from the opening rate of 1.5289. EUR/GBP traded near 0.8803 after it opened at 0.8815.
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