Pound falls on political uncertainty in UK

A poll conducted by a currency firm indicates that the economic outlook for the UK would improve with the resignation of prime minister Gordon Brown.

Caxton FX conducted the survey of clients, which revealed that 47 per cent saw a brighter future without Mr Brown, prior to last night’s European election results.

These showed the Labour party’s share of the vote falling to just over 15 per cent, well behind the Conservatives and UKIP.

The poor performance is likely to put further pressure on Mr Brown’s position - which appeared to be weakened last week with the local election results and the resignation of several ministerial colleagues.

Caxton FX noted that the performance of sterling had fluctuated throughout the week - with the pound tracking a decline of three cents against the dollar on Thursday as Westminster rumours of Mr Brown’s resignation swept the City.

Overall, the pound fell from a high of almost $1.66 on Tuesday to under $1.60.

Alex Dunn, senior analyst at currency specialists Caxton FX, commented: ’Markets hate uncertainty and while this struggle for leadership continues at Westminster, the pound will be subject to sudden, unpredictable fluctuations as we saw on Thursday.’ADNFCR-2318-ID-19207437-ADNFCR