PUBLISHED: 07:24, Mon, Dec 2, 2019 | UPDATED: 08:04, Mon, Dec 2, 2019
The pound continues to trade flat against the euro today, with no obvious outcome of the general election. While the pound saw boosts in the last month with traders waging on a Conservative majority, the potential for a hung parliament could be detrimental for sterling. With the general election due on 12 December, the campaigning parties are entering into the final stretch. The final result will certainly have an impact on the pound’s position.
The pound is currently trading at a rate of 1.1724 against the euro according to Bloomberg at the time of writing.
Speaking exclusively to Express.co.uk, Michael Brown, Senior Currency Analyst at Caxton FX said: “Sterling traded flat against the euro on Friday, with little in the way of economic releases or impactful political developments to impact price action.
“In the week ahead, the direction of travel for the pound will continue to hinge on political developments, as the election campaign enters its final stretch. Should the Conservatives maintain their present poll lead, the pound will likely remain well-supported.
“However, any signs of the polls tightening - potentially edging into hung Parliament territory - will pose a headwind to the pound.”
READ MORE: Pound to euro exchange rate: Sterling stable and 'well-confined' [GRAPH]
Pound to euro exchange rate: The pound is continued to trade flat against the euro on Friday (Image: Getty Images)
Pound to euro exchange rate: The pound is trading at a rate of 1.1724 (Image: Bloomberg)
Poll Expert Sir John Curtice warned on Sunday that according to prediction polls if the Tories drop just four percentage points “we could be entering hung parliament territory.”
The remarks come in the wake of MPR polling analysis that accurately predicted the election outcome two years ago.
This time the YouGov poll suggested that the Conservatives would win 359 seats, Labour 211, the SNP 43 and the Liberal Democrats 13 if the election were held today.
However, the expert also pointed out that a Conservative win “was not in the bag” yet.
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