May 6th in City News, Currency, Markets, Politics by Editor .

Pound Steady Despite Hung Parliament Predictions

As the most uncertain election since the hung parliament of 1974 gets going, the pound is surprisingly solid…

Charles Tyrwhitt UK
 

The potential result has almost certainly been priced in…to a point. Concerns that a hung Parliament would upset markets because it would be too weak to sort Britain’s dire finances have subsided slightly over the week. And the pound even strengthened against its most-active counterparts whilst gilts  rebounded as traders bet that any incoming party will deliver a plan to reduce the deficit.

However, the pound did fall 0.5 percent against the dollar to $1.5023 at 8:25 a.m. this morning. But it advanced to the strongest in nine months against the euro, to 84.87 pence – hardly surprising given the Greek situation.

Come tomorrow though, if no clear leader emerges then the events in the days ahead still have the potential to scare the markets.

In the meantime we wait with baited breath for the exit polls and the final result.

The final polls from yesterday:

A Populus survey for the Times put the Tory’s lead over Labour at 37 percent to 28 percent, with the Liberal Democrats at 27 percent. That would give the Conservatives 295 seats, Labour 249 and the Liberal Democrats 78 seats.

An ICM poll for the Guardian showed 36 percent of respondents backing the Conservatives, Labour 28 percent and Lib Dems 26 percent, giving the Conservatives a lead in seats of 283 to 253.

A ComRes Ltd. Poll found 37 percent backing Cameron’s party, 28 percent supporting Brown’s and 28 percent for Clegg’s. That would give the Conservatives 299 seats and Labour 233.

  • Share/Bookmark

Comments are closed.