After a surprising campaign, the UK election campaign ends and voting begins. What can we expect? Here are two scenarios from Credit Suisse:
Here is their view, courtesy of eFXnews:
Credit Suisse FX Strategy Research outlines the key scenarios for the UK elections on Thursday and the potential GBP direction for each of them.
1- “If the Conservatives win with a comfortable majority of 50 seats or more, there is scope for GBP to pop higher on the result and we would look to sell GBP on such a pop, given our longer-term concerns over Brexit talks and the future for the UK economy.
2– Meanwhile, a frustratingly tight win for the Conservatives, or results worse than that, would likely see GBP gap lower. But as some market participants believe this “bad outcome†actually raises the odds of a “soft Brexitâ€, we assume a bid would emerge that steadies GBP after its initial gap lower,†CS argues.
GBP/USD is trading 1.2905 as of writing.
For lots more FX trades from major banks, sign up to eFXplus