Sterling Pound dropped against a basket of major currencies on Friday, GBPUSD extending its losses for a second consecutive day , hitting a two-week low after a recent poll showed a decline of Conservatives against Labour, two weeks ahead of UK elections.
GBPUSD is traded at around 1.2875 at 08:20 GMT from opening price 1.2940 after it reached its highest at 1.2945 and its lowest at 1.2860 since 12 May.
GBPUSD closed yesterday’s trading session lower by more than 0.2% , following the Greenback’s recovery against most major currencies, and the weak data released from Britain showing a slowdown in the UK economic growth during the first quarter of 2017.
The UK economy grew 0.2% in Q1 of 2017, more slowly than experts’ expectations of 0.3% growth, while it grew by 0.6% in Q4 of 2016.
The Conservative Party got 43%, a 1% decline from last week’s rate, compared with the rise of the Labor Party by 3% reaching to 38%, according to YouGov poll on Thursday.
Most polls predicted that May party would achieve a big victory in the early parliamentary elections, but the party’s decline this week was due to the cancellation of welfare reform proposal.
Last April British Prime Minister Theresa May called for early parliamentary elections to be held on 8 June in order to get a political and social support for Brexit negotiations.
Early this week, the pound has been under negative pressure after the government threatened to suspend Brexit negotiations, if the EU insists that the bill of exit that must be paid by UK costs 100 billion Euros.