Theresa Mays snap election could have implications for Pound Sterling, the below report highlights some of these potential outcomes.
After a historic and memorable landslide victory for the Scottish National Party (SNP) at the last General Election, winning 56 of a possible 59 seats could the time have come for the SNP to have a taste of their own medicine? The first poll since Theresa May called the snap General Election on 18th April, released on Sunday morning by Sunday Times Scotland has the Scottish Conservatives up 18 percentage points (to 33% of votes) compared to the 2015 General Election, and estimating the party to take 12 seats this time round on June 8th.
The Scottish Conservatives currently only have one Scottish MP (David Mundell), however the poll results suggest the party could be on track for their best result in Scotland since Sir Edward Heath’s 1970 government.
It was not long ago the currency markets were principally determined by economic data releases, signifying the strengths and weaknesses of individual economies and trading blocs. However, more recently times have changed. The markets shift almost instantaneously as information regarding Britain’s Brexit path, Donald Trump’s administration, growing disparities in the Eurozone and many other prominent woes are priced into rates by investors and traders alike.
If polls continue to suggest Theresa May is able to increase her majority in the upcoming election, with particular attention in Scotland it will have two main benefits:
If this is achieved I believe GBP rates could gain significantly against all major counterparts. Allowing a real chance for GBP/EUR and GBP/USD to once again break through their respective recent 1.20 and 1.30 short term psychological barriers and even continue trending higher in the medium to long term.
With so much volatility in the markets it may be wise to secure a rate with one of the many contract options we provide. Speak with a member of our team on 01494 725 353 to learn more.
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