Election Day 2019 has arrived and with it so has the potential for large swings on the currency market. The pound remains steady against its peers at present, still sitting very close to the recent multi-month highs we have witnessed; however, this is all set to change.
The polls are still predicting a Conservative majority, although the potential margin of victory has reduced over the past few days, which leaves the door open for another hung parliament. A Conservative win should lend the pound support, but how much support, we believe, is dependant on how large a majority they can gain. The larger the majority, the larger the gain for Sterling. Anything other than a Conservative majority would shock the markets and could have a severe, adverse effect on the pounds value.
Whatever the outcome of the election I think the one certainty is market volatility.
If you have an upcoming requirement to buy or sell GBP please don’t hesitate to get in touch. We have a number of different contract options to help safeguard your funds against adverse market movements.