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FxWirePro: Pound suffers as conservative’s lead fade ahead of June elections

Pound was knocked down to the lowest level in two weeks by traders last night as the latest poll indicated a decline in support for the ruling Conservative Party, especially after this week’s Manchester attack that has shaken the country to its core.

The latest YouGov poll indicated that Theresa May’s ruling conservative party is just five points ahead of the opponent Labour Party which is being led by Jeremy Corbyn. The first poll since the Manchester attack shows that the support for the Conservatives declined by 1 point to 43 percent, while the support for Labour Party increased by 3 points. The pound rose after Prime Minister May surprisingly announced the snap election on June 8th last month as the financial markets were hoping for a big majority of the conservatives ahead of the crucial Brexit negotiations.

Theresa May, herself hoping for a strong majority in the parliament, which not only would make her life easy at home handling domestic politics but would provide a strong mandate from the people to as she plans to handle the negotiations firmly.

While we at FxWirePro have forecasted a pound parity with the dollar over the longer horizon, we remain bullish on pound heading to the election. The pound has reached two of our recently forecasted targets at 1.29 and 1.302 and the next targets are 1.32 and 1.35.

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