GBP/USD: Cable Drops as Conservative Lead over Labor Fades – YouGov Poll
BREXIT LATEST – GBP PRICES EDGE LOWER AS YOUGOV POLL PROJECTS CONSERVATIVE MAJORITY OVER LABOR WANES AHEAD OF UK GENERAL ELECTION THIS WEEK
- The British Pound is coming under pressure owing to a rise in the probability of another hung Parliament after the latest YouGov poll is predicting 20 fewer seats for Conservatives
- GBP prices dropped to session lows immediately following the UK election poll results with the risk of further Brexit paralysis resurfacing
- Check out this Brexit Timeline for an overview of how Brexit negotiations have affected the British Pound and broader financial markets
GBP/USD has plunged nearly 100-pips from intraday highs and spot prices are still edging lower in response to the latest YouGov poll which revealed that PM Boris Johnson’s Conservative Party majority over its primary opposition – Jeremy Corbyn’s Labour Party – fell by 20 seats compared to the previous YouGov poll.
CHART OF UK GENERAL ELECTION PREDICTIONS (YOUGOV POLL)
Tories are now predicted to champion 339 seats while Labour MPs are estimated to chair 231 seats. This compares to the prior projection of 359 seats and 211 seats respectively. The prospect of another hung Parliament back on the rise as the most recent MRP estimate for the December 12 UK general election results noted a drop in the expected Conservative majority.
GBP/USD PRICE CHART: 15-MINUTE TIME FRAME (DECEMBER 10, 2019 INTRADAY)
The prospect of another hung British Parliament could jeopardize PM Boris Johnson’s ability to deliver Brexit once and for all and threatens to keep exerting downward pressure on GBP price action. Correspondingly, spot GBP/USD is spiking lower and now trading at session lows with the cable currently on pace to finish the day 0.3% lower.
Take a look at this Sterling Forecast & UK General Election Preview for additional insight on where the British Pound might head next.
Connect with @RichDvorakFX on Twitter for real-time market insight
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.