LONDON — The pound is up in early hours trading on Tuesday as investors await the outcome of Thursday’s general election.
The currency has traded choppily in recent weeks as polls indicate a significant narrowing in the race for Downing Street. A Survation poll published on Monday evening found Labour within just one point of the Conservatives.
While the Conservatives still have a solid lead, the less predictable prospect of a hung parliament or coalition government has unsettled some investors.
Investors still appear to be betting on a Conservative majority, with the pound and the FTSE 100 proving resilient amid the narrowing polls.
The pound was up 0.17% on Tuesday morning to trade at $US1.2925. Here is how it looks at 8.42 a.m. BST (3.42 a.m. ET):
And here is how it looks against the euro:
Hussein Sayed, chief market strategist at FXTM, says in a morning note: “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 GBP/USD above 1.3.”
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