Sterling sinks after May seen falling short of majority

Thursday June 8, 2017

Sterling sank more than 2 cents against the U.S. dollar after an exit poll on Thursday unexpectedly showed Prime Minister Theresa May falling short of an overall parliamentary majority in Britain's election.

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By 2120 GMT, the pound traded down 1.5 percent on the day at $1.2732, having fallen as low as $1.2705 GBP= in the minutes after the projection was released by UK broadcasters.

The pound also fell 1.7 percent to 88.02 pence per euro. EURGBP=

"A hung parliament is the worst outcome from a markets perspective as it creates another layer of uncertainty ahead of the Brexit negotiations," said Craig Erlam, a market analyst with brokerage Oanda in London.

"Sterling looks very vulnerable to further downside. It could be another very bad night for the pound."

(Writing by Patrick Graham; editing by William Schomberg)

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