General Election causes problems for the Pound (Tom Holian)

We are now just one week before the UK goes to the polls with the election due to take place on June 8th. At the moment the opinion polls are showing mixed reports with one even suggesting we could see a hung parliament.

Last night’s live TV debates were interesting and have caused much discussion about Theresa May’s absence but it could be argued that it was a good idea for her not to go as at times it appeared at times to be one big argument.

The recent demise for the Pound has been caused by the uncertainty as to what is happening politically and we are likely to continue to see volatility for the Pound until we know who will be the victor next week.

If the Tories get in with a majority then this could provide the Pound with a boost against all major currencies as it means another term of financial stability and this typically boosts the currency involved.

Uncertainty tends to cause big problems for a currency and as we do not know what will happen next week this is causing weakness for Sterling exchange rates and if there is a hung parliament this could cause even further losses for the Pound.

One other important factor to bear in mind is that even if the Tories win this may not mean huge gains for Sterling as it also means that Brexit negotiations will be allowed to begin.

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to offer you both better rates than using your bank and also help you with the timing.

Tom Holian