British PM May could lose majority

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"The near-term risks to sterling remain heavily tilted to the downside", Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said in a research note on Tuesday.

May surprised nearly everyone in April when she called the snap election, saying she wanted to strengthen her hand for negotiations with the rest of the European Union about Britain's exit from the bloc.

The pound fell to a one-month low against the US dollar Wednesday after a one of the countries biggest pollsters forecast a hung parliament in next week's United Kingdom elections.

A total of eight polls carried out since the May 22 Manchester suicide attack have shown May's lead over the Labour Party narrowing, with some suggesting she might not win the landslide predicted just a month ago.

YouGov came out with a new projection model this week that indicated May could lose 20 seats - enough to strip away her majority in Parliament.

United Kingdom stocks advanced Thursday, getting a boost from a weaker pound, which slid back after another election poll showed a drop in support for Theresa May's governing Conservative Party.

If May failed to win an overall majority, she would be forced to strike a deal with another party to continue governing either as a coalition or a minority government.

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British pound volatility has recently increased, not only because the general election is approaching, but also because some opinion polls suggest a hung parliament. Some political experts even said the Conservative's main opposition, the Labour party, is showing "brutal" numbers.

A shock new projection on the front page of The Times newspaper forecast a hung parliament in which the Conservatives would fall short of the 326 seats needed for a majority.

"This great national moment needs a great national effort in which we pull together with a unity of goal and - however we voted in the referendum last June - we come together with a determination to make a success of the years ahead".

The general election will take place June 8.

YouGov's chief executive stressed the central projection that "allows for a wide range of error" and that "the Tories could end up with as many as 345 and Labour as few as 223".

The pollster said the approach was used during the European Union referendum and consistently showed voters backed Leave.

The prime minister would undoubtedly face questions over her leadership if the modelling by YouGov is proved to be accurate in just over a week, especially after she was forced into a humiliating U-turn over a proposed social care reformed dubbed the "dementia tax" by critics.