Election Rate Alert – Thursday 8th June 2017

Election Rate Alert – Thursday 8th June 2017

Today, the United Kingdom electorate will be taking to the ballot boxes in order to cast their vote. With such a tightly fought election campaign, the Conservative lead in the polls has narrowed significantly over the weeks, with growing support for Jeremy Corbyn’s Labour.

Sterling has had an interesting ride since Theresa May announced the election, initially rallying on a compelling Conservative lead to see yearly highs, but then retracing as the polls narrowed. With so much uncertainty over who will be in government – or even if there will be a government - come tomorrow, the markets could be in for a turbulent time.

If the Conservatives secure a predicted majority, then Sterling is likely to strengthen and maintain its recent bullish run. However, with a hung parliament looking ever more likely, and the potential for Labour to seek a majority coalition, then the markets could react bearishly, seeing unprecedented Sterling weakness similar to the Brexit reaction. How would your business cope with another Sterling sell off?

IFX will be running a 24 hour trading desk between 8.30am 8th June 2017, and 8.30am 9th June 2017. Please feel free to contact me directly in order to discuss ways in which we can help mitigate any additional risk brought on by this increase in market volatility.

Kind regards,

Thomas Frake

Corporate Executive – IFX Corporate Currency Desk

+44 (0)203 872 8294