Theresa Mays snap election could have implications for Pound Sterling, the below report highlights some of these potential outcomes.

Mark Carney to Stay as Governor

Can the SNP continue their run of form?

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.

How could this affect my currency transfer?

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:

  • Firstly, reducing the power of a small number of hard-line Brexit MPs in the current Conservative government with a majority of just 16 seats.
  • Secondly, if the Scottish Conservatives can increase the number of seats they hold it may signify a weakening of the SNP’s power and ease investor concerns of a second Scottish independence referendum.

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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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.