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2 Apr 2015
Most probable UK election outcomes negative for the pound – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, believes GBP might remain pressured due to the increasing political uncertainty stemming up from the upcoming UK elections.
Key Quotes
“If the 2010 election can be used as a precedent, election jitters in sterling may be fairly muted in the coming weeks. We would argue, however, that this election has the capacity to create more uncertainties than the last.”
“Firstly, opinion polls have not been universally showing that the “business friendly” conservative party is in the lead. Secondly, the ‘business friendly” tag is confusing since if the next coalition is led by the Tory party this will bring a referendum on EU membership, which could worry international investors.”
“This suggests that on almost all outcomes of this election the uncertainties for investors could rise and this could weigh on sterling.”
Key Quotes
“If the 2010 election can be used as a precedent, election jitters in sterling may be fairly muted in the coming weeks. We would argue, however, that this election has the capacity to create more uncertainties than the last.”
“Firstly, opinion polls have not been universally showing that the “business friendly” conservative party is in the lead. Secondly, the ‘business friendly” tag is confusing since if the next coalition is led by the Tory party this will bring a referendum on EU membership, which could worry international investors.”
“This suggests that on almost all outcomes of this election the uncertainties for investors could rise and this could weigh on sterling.”