David Cameron set to return to 10 Downing Street!

At 10pm last night exit polls suggested the conservative party were going to win the most amount of seats (316, only 10 short of forming a majority government). So far the results that have been counted are in line with the exit poll and the Tories are confident they will be back in government; Either by winning a majority or worst case scenario by forming a coalition.

The main talking point for the labour party is the loss of seats in Scotland and therefore almost completely being wiped out by the SNP. At 5.40am this morning 57 seats had been declared in Scotland with the SNP winning an incredible 53 and expected to win over 50% of the Scottish vote. Furthermore in the lead up to the election the feel was that Ed Miliband had realised he would lose seats in Scotland however never imagined he would take this much of a hammering.

So what next?

Over the next few hours the final votes will be counted and all eyes will be on the amount of votes the conservatives receive. If they fail to win the majority David Cameron will be making calls to the smaller parties to form a coalition. However one thing is for sure David Cameron will be back in power and the next UK Prime Minister.

For the other major party leaders, (Ed Miliband of Labour and Nick Clegg of Lib Dems,) I expect both will be releasing statements once the Tories have formed a government regarding their future as party leaders. Due to the dismal performance, I expect both leaders to stand down.

What Impact has the last 8 hours had on exchange rates?

Over night the currency markets have reacted to the UK General election news and Sterling has made ground against all major currencies. I expect this to continue. Therefore if you are looking to purchase Sterling with a foreign currency I would recommend calling your broker immediately to secure a rate. If you are not a Foreign Currency Direct client feel free to click here to activate a free trading account.

Greece refuse to negotiate

With Greece set to make its next debt repayment of €763m (£566m) to the IMF on Tuesday, new concerns have arisen putting a ‘Grexit’ back on the cards. Gabriel Sakellaridis a spokesman for the Syriza party yesterday exclaimed; Making cuts to labour or pensions is not an option. Furthermore if the Syriza party fail to meet their deadline by Tuesday and refuse to make cuts I expect no option other than a Greece default, which will send shockwaves through the Eurozone. If you are looking to buy or sell Euros in the upcoming weeks feel free to call an experienced trader today on 01494 725 353 for a free quote.

USD Update

Today at 12.30pm US Nonfarm Payrolls are to be released. This is the number of people on the payrolls of all non- agricultural businesses. The general consensus is for a rise compared to last month’s figure which should give strength for the Dollar. Also at 12.30pm the US are to release unemployment data. The proposed figure is a 0.1% drop which should strengthen the dollar further.

If you are looking to buy Sterling with US dollars in the foreseeable future a window of opportunity may present itself today. For more information feel free to call 01494 725 353 or email me directly on drl@currencies.co.uk.

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