Polls tighten in the UK, GBP slides accordingly

With the British election less than two weeks away, it appears to be less of a blowout in the making than we thought.

Per The Times, Jeremy Corbyn's Labour Party has cut Theresa May's Tories' lead to less than five percent. This after comedians had spent the last few weeks since the announcement of the snap election making near constant mockery of Corbyn's unpopularity and lack of charisma.

Should Labour shock the world, it would signal a sharp pushback against a hard Brexit and the country's generally conservative political center.

GBP/USD last 30 days, data per Bloomberg
Unlikely? Sure, but the results are getting closer to falling within the statistical margin of error, at which point things like turnout, late news events, even bad weather in a key part of the country could be enough to tip the scales.

As a result the market has seen a sharp decline in the value of the pound, falling more than 1.11% overnight in response.

In theory, a move away from Brexit should strengthen the pound as it indicates a desire for closer ties to Europe, more trade, and greater economic growth.

In practice, this is yet another sign of the political instability that has been choking out Western economies since the start of the immigration crisis in Europe and the populist movement that led Donald Trump to the presidency in America.


Popular Posts