What is a hung parliament?

Odds on Labour Winning the UK General Election are Dropping!

The Prime Minister insisted the only poll that matters is the June 8 vote after the seat projection study suggested the United Kingdom faces a hung parliament.

In stark contrast to a string of opinion polls that have suggested Mrs May's Conservatives will increase their majority, the new constituency-by-constituency modelling by YouGov showed it might lose 20 of the 330 seats it holds and the opposition Labour Party could gain almost 30 seats, The Times said.

If the YouGov model turns out to be accurate, May would be well short of the 326 seats needed to form a government tasked with the complicated talks, due to start shortly after the election, on Britain's divorce from the European Union.

If YouGov's polling result materializes, Conservatives would win 310 seats, compared with 330, while Labors would gained +28 seats to 229.

That would have uncertain consequences for Britain's $2.5 trillion economy, and future government policy on everything from government spending and corporate taxation to bond issuance. Scottish National Party (SNP) deputy leader Angus Roberston said the prime minister had put her party before the country in calling an election because she thought she would win a massive majority, describing her as "not so much the Iron Lady as the U-turn Queen". GBP/USD had soared back up to 1.30 since the snap election was called, but the previously unassailable Conservative lead has been shrinking in the polls and Labour have clawed their way back into the conversation.

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But despite the unpopularity of the proposal, May is more than 10 points ahead of Corbyn (43 versus 30) in personality ratings. Labour is on 39 percent, up three points and its highest level since 2014, before Jeremy Corbyn became party leader.

This is down to the popularity of labour leader Jeremy Corbyn rising while Theresa May's popularity has slumped.

In 2010, the Conservatives and Lib Dems agreed their coalition in five days, largely because they were anxious that financial markets would panic if Britain did not form a new government quickly. "You can only deliver Brexit if you believe in Brexit". An ICM poll for the Guardian newspaper will be published later on Tuesday. "And even if his promises are practically impossible and economically catastrophic, set against the Tories' unnecessarily defensive campaign it's small wonder he appears to be picking up support".

Her decision to send senior minister Amber Rudd was "another sign of Theresa May's weakness, not strength", Corbyn said.

The pound fell 0.5% Wednesday in reaction to the YouGov poll, but by late afternoon had made good most of its losses against the euro and was actually 0.4% up against the dollar.