One of the most difficult United Kingdom elections to predict in recent memory is creating a tense situation for the Pound as market participants await the results. The increasingly fragmented nature of the UK parliamentary system means that cobbling together a coalition will be challenging for the winning party. The race between the Conservatives and Labour is exceedingly close, with neither side harboring a clear advantage. What will be relevant are the results of smaller parties including the UK Independence Party (UKIP) which has a more nationalistic approach, denouncing the European Union and intent on leaving what it has determined is a broken system. Also noteworthy is the Scottish National Party, harnessing momentum from the most recent referendum to boost the voice of the region as it seeks to extend its influence in national politics. EURGBP is trading substantially stronger ahead of the results, with the Pound down -0.36% versus the Euro since the overnight session.
UK Elections Underway
Daily Analysis - 07/05/2015