Pound surges to two-year high against the euro

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Sterling has jumped after opinion polls suggested the UK would avoid a hung parliament after next week’s election.

The pound reached a seven month high against the dollar and its highest level against the euro since May 2017.

The move came after polls suggested a 10-point lead for the Conservative party and a parliamentary majority.

However, analysts cautioned against relying too much on one poll and said the pound gained momentum after it went past the $1.30 mark.

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Michael Brown, senior analyst at Caxton, said: “As we saw in 2017, polls can sharply narrow as we approach polling day.

“If a repeat situation pans out, seeing Labour gain ground and hung Parliament territory approach, sterling will likely face stiff headwinds.”

The pound gained as much as 0.6% to touch $1.307 while against the euro, the pound hit a high of €1.181, up 0.68%.

Jane Foley from Rabobank said the move was mainly caused by “technical reasons” as sterling went over the “psychological” $1.30 level.

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