020 7898 0500With very little in terms of economic data yesterday, it seems the market is poised for the general election result which will land in the early hours of tomorrow. Sterling fluctuated within a half-cent range against the dollar for most of yesterday, still managing to retain some of the highest levels we’ve seen in the past seven months.
Despite the dramatic narrowing of Theresa May’s lead in the polls, it still looks like the Conservatives will hold the most seats. The amount of seats they win by is likely to dictate the movement in the pound.
If, on the other hand, there is a hung parliament, then this could easily extend sterling’s weakness. The failure to secure a mandate for Brexit will probably hit the pound hard, and a hung parliament opens up the genuine possibility of a Labour-led coalition. The markets will certainly respond to this.
