GBP Falls as UK Brexit Rhetoric Hardens and Labour Closes the Gap

The pound fell below $1.30 after the U.K. hardened its Brexit rhetoric and polls predicted a narrower-than-expected win for Prime Minister Theresa May in June elections.

Sterling weakened against all its major peers as the latest Opinium Research survey showed the opposition Labour Party cutting May’s Conservative Party lead to 13 points from 15 points a week earlier. A YouGov survey in the Sunday Times put Jeremy Corbyn’s party nine points behind, the first time it has had a single-digit gap since September. The British currency also declined after Brexit Secretary David Davis said the U.K. will quit talks with the European Union if the bill for exiting the bloc exceeds 100 billion euros ($112 billion).

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam