GBP/USD Drops Sharply to 1.5150 Before Election

Sterling dropped sharply against the dollar on Friday for a second consecutive day, falling 1.3 per cent following a strong performance in April, as markets braced for a potentially messy outcome to next week’s election.

Although Conservative campaign chiefs believe David Cameron is finally starting to pull ahead in a very tight contest, the opinion polls are pointing to a hung parliament.

“Finally we are seeing some election uncertainty coming through,” said Jane Foley, senior FX strategist at Rabobank. “Sterling could be on the back foot if there are doubts about the workability or sustainability of a coalition government.”