MetaTrader 4
Vertex FX 10

UK Election Weighs on Sterling

Major analysts have released notes warning their clients that the minority government outcome from the general election on 7 May is “likely” to weaken Sterling. The most recent polls (YouGov) show the two major parties neck and neck.

UBS along with Citi have said that the possible formation of a minority government will lead to a clear decline in the pound, at a time when Sterling has traded at a 5-year low.  With voters heading the ballot box in just over two weeks, the expectation is that there will be no clear majority, with a coalition government.

The polls have a margin of error, and may not represent accurately how the public will vote at the ballot box, though it is clear there should be further volatility as the election nears.

EURGBP: 0.7190

GBPUSD: 1.4951

comments powered by Disqus
Request callback

Back to Top