The UK election results are now flowing quite rapidly, with declarations of seats mostly confirming the exit polls, that showed a hung parliament. The shock sent the pound down, but it has since recovered. The actual results show an outperformance for Labour. Corbyn could become PM, or at least May could leave Downing Street. Will it necessarily kill the pound? A lot depends on the government, especially if the pro-Remain LibDems are inside. If so, this is one of our 3 reasons for a buying opportunity on GBP/USD.
Key points
- It is clear that May’s gamble backfired. The Conservative Party is not heading to an absolute majority nor a landslide victory.
- The initial reaction was pound negative: a drop of over 250 pips.
- However, a coalition or a minority government could need pro-Remain forces such as the LibDems or the SNP.
- The UK will still leave the EU, but Brexit could be softer
- GBP/USD could rise from here.
And not only election results are flowing, but also trading volume. Here is a live blog
The live blog takes a brak for now.
