GBPUSD continued trade below the $1.50 level today following new polls pointing to a hung parliament and a downbeat report from the Confederation of British Industry (CBI).

On Sunday two opinion polls indicated that no party was on course to win an overall majority in the upcoming election. An ICM poll for the News of the World newspaper showed the Conservatives party falling three points to 38% and the Labour party gaining two points to 32% while a separate poll by YouGov showed the Conservatives gaining a point to 38% and Labour falling two points to 31%. The poll results suggest the Conservatives will become the largest party in parliament but without enough seats to for an overall majority. Consequently, a hung parliament would slow down policy implementation and heighten the risks of a double dip recession. Also weighing on sterling today was a report from the CBI, which warned the UK economy will remain weak until the middle of next year and that domestic economic growth would remain fragile due to the reining in of stimulus measures. The CBI also expects UK consumer spending to remain subdued this year due to challenging labour market conditions.