Sterling sharpens decline against dollar

Sterling tumbled to its lowest since April 25 against the dollar in American trade as the ruling Conservative party's popularity waned, while the Labor party gained ground in recent opinion polls ahead of the early elections in June, and following earlier data from the world's largest economy. 

As of 05:56 GMT, GBP/USD fell to 1.2787 from the opening of 1.2942, with an intraday high at 1.2947, and a one-month low at 1.2776. 

According to the YouGov poll released on Thursday, the Conservatives led with 43%, down 1% from last week, while the Labor party rose 3% to 38%, after Prime Minister Theresa May scrapped suggestions for social care reforms. 

In April, May called for snap elections in June in an attempt to gather political and electoral support for her Brexit negotiations with the European Union. 

Otherwise, earlier U.S. data showed the GDP growing 1.2% in the first quarter according to the second reading, up from 0.7% in the first reading, and past expectations of 0.9%, while GDP prices rose 2.2%, down from 2.3% in the previous reading. 

Durable goods orders fell 0.7% in April, compared to a 0.9% rise in March, and besting forecasts of a 1.4% drop. 

Core orders fell 0.4%, compared to no-change in March, while analysts expected a 0.4% rise, reflecting the possibility of continued slowdown in US growth in the second quarter, which could weigh on the Federal Reserve's policy decisions in June.