1 May 2015
Further losses ahead for the GBP as election uncertainty weighs – ANZ
FXStreet (Barcelona) - Brian Martin and Dylan Eades of ANZ, expect GBP to underperform further versus EUR, AUD and NZD, as political risk might weigh on the sterling even after the UK elections.
Key Quotes
“The UK general election campaign has entered its final week. On average, opinion polls are showing that neither of the major parties, either the Conservatives or Labour, will win sufficient seats to form an overall majority. If anything, polls have recently suggested that the Conservatives are pulling ahead and should win the most seats, but fall significantly short of a majority.”
“In the immediate aftermath of the general election, the political landscape could be quite uncertain. There are 650 seats in the House of Commons. 326 are needed to win an outright majority, but as Sinn Fein and the Speaker of the House don’t vote, the effective majority required is 323 seats.”
“Both the Conservatives and Labour may try to form the next government. “A prime minister remains in office until he or she informs the Queen they are resigning, and is only "expected" to resign once it becomes clear that they cannot command a majority in the house,” the BBC reports.”
“As expected, political uncertainty has begun to weigh on sterling. Certainly, that has been the case on the crosses, with EUR/GBP rallying nearly 3% over the past couple of days and GBP underperforming both the AUD and NZD. Further losses seem probable.”
Key Quotes
“The UK general election campaign has entered its final week. On average, opinion polls are showing that neither of the major parties, either the Conservatives or Labour, will win sufficient seats to form an overall majority. If anything, polls have recently suggested that the Conservatives are pulling ahead and should win the most seats, but fall significantly short of a majority.”
“In the immediate aftermath of the general election, the political landscape could be quite uncertain. There are 650 seats in the House of Commons. 326 are needed to win an outright majority, but as Sinn Fein and the Speaker of the House don’t vote, the effective majority required is 323 seats.”
“Both the Conservatives and Labour may try to form the next government. “A prime minister remains in office until he or she informs the Queen they are resigning, and is only "expected" to resign once it becomes clear that they cannot command a majority in the house,” the BBC reports.”
“As expected, political uncertainty has begun to weigh on sterling. Certainly, that has been the case on the crosses, with EUR/GBP rallying nearly 3% over the past couple of days and GBP underperforming both the AUD and NZD. Further losses seem probable.”