Contrary to the tight polls, results coming out of the UK elections show that the David Cameron is returning to his role as Prime Minister, and could command an absolute majority.
The latest projections show the Tories on 329 out of 650 seats. This is the best possible result for markets, and GBP/USD holds high ground.
Pound/dollar traded around 1.5250 before the release of the exit polls and jumped to 1.54 immediately afterwards. It experiences wild fluctuations and crossed the 1.55 level and also fell under 1.54. At the time of writing, cable is at 1.5430.
The pound is also gaining against other currencies by over 1%.
The exit polls were quite surprising with a lead for the Conservatives and a defeat for Labour and the LibDems. The jump of the pound even looked like a sell opportunity.
The results are still coming in, but the most recent ones show no close race/
More: GBP: Trading The UK Elections – Credit Agricole
