The pound fell on Monday as polls showed a growing probability the Dec. 12 UK el...
LONDON - The pound fell on Monday as polls showed a growing probability the Dec. 12 UK election would end in a hung parliament.
British Prime Minister Boris Johnson’s Conservative Party saw its lead over Labour narrow to 9 percentage points in the past week but remains the front runner, a Survation poll for ITV’s Good Morning Britain said on Monday.“There are increasing parallels with the way polls played out in 2017 with what we’re seeing now, so that could cap the upside for sterling,” said Jeremy Stretch, currency analyst at CIBC.
Speculators have added some short positions on the pound in the week to Nov. 26 for a total of $2.58 billion, CFTC data showed, though net short positions were still low for this year. Three and a half years after Britain voted to leave the EU, markets still don’t know whether the third Brexit deadline will be met on Jan. 31 or whether Britain will be able to negotiate a favourable trade deal afterwards if it happens.
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