By Daniel Hunter
Analysts have warned that the value of the pound will be volatile in the lead up to the general election.
The sterling fell as low as $1.4685 in early trading on Friday, down from $1.4802 on Thursday. It comes as a result of uncertain share prices and investors bought insurance against large falls in the price of the pound.
Michael Hewson, chief market analyst at CMC Markets, an online trading business, said: “The pound has started to come under some pressure in recent days as the prospect of political gridlock in a few weeks’ time starts to become a real possibility, at a time when some of the economic data is starting to show some signs of weakness.”
“The latest manufacturing and industrial production numbers for February are expected to come in fairly positive at 0.4% and 0.3% respectively, but they aren’t expected to completely reverse the weakness seen in the January numbers, which were disappointing, with any disappointment likely to weigh further on the pound.”