Pound to tumble initially before longer term 'sterling revival' following election results

Labour plans a 'catalyst' for growth

clock • 3 min read

Despite UK markets having priced a strong Labour majority in line with recent polling, “there may still be a level of political uncertainty the markets likely will not like”, according to Oanda CEO Gavin Bambury.

After UK citizens head to the ballot box for the first general election since December 2019, analysts and traders will be waiting for the 10pm exit poll announcement to see who will form the next government. Historically, sterling has fluctuated before and in the immediate aftermath of major political decisions in the UK. Three weeks before the 2015 election, the pound fell to a five-year low and immediately after the 2016 Brexit referendum, sterling plummeted to its lowest level since 1985, according to data from Thomson Reuters. Oanda's Bambury noted: "In the seven days that foll...

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