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Pound Traders Sweat as Narrowing Polls Boost Election Jitters

  • Measure of expected sterling swings jumps as Tory lead fades
  • Pound may drop below $1.25 before the election: Standard Bank
New British one pound coins sit in a container during their production at The Royal Mint in Llantrisant, U.K., on Thursday, March 23, 2017. Britain's Royal Mint is making 1.5 billion new one pound coins, which will enter circulation on Tuesday, with security features such as a unique 12-sided, bimetallic design, a hologram, fine lettering and some secret tricks to beat crooks.
Photographer: Jason Alden/Bloomberg

The U.K. elections are getting tighter, which could mean a nervy couple of weeks for pound traders.

Sterling dropped Friday, rounding off the worst week this year, as a poll showed Theresa May’s Conservative Party leading the main opposition Labour Party by just five points, a gap that even this month had been as high as 24 points in some surveys. That left investors questioning whether the Prime Minister would achieve the increased majority that had been baked into the pound for the past few weeks.