Last Chance Saloon Ahead Of UK Elections

8 June, 2017

Simon Eastman

As the country heads to the polling booths today to cast their vote for the General Election, today is the last chance for anyone concerned about the volatility or outcome to secure their currency requirement.

The parties have done all they can to sway the public now with campaigning over; the public now has the chance to cast their vote up until 10 pm this evening with results coming throughout the night as to which way we’ve voted. The pound was faring better yesterday as a Telegraph poll showed Theresa May is expected to win with a majority of around 100 seats, up from the 40 previously seen. The 4 point lead over Labour although as we know from the referendum, close calls can often go against the general expectation as we saw with the Brexit referendum just under a year ago.

The pound gained nearly a cent at its peak yesterday, helped along the way against the euro by reports the European Central Bank is likely to announce they are cutting the inflation outlook for the Eurozone for the next couple of years when they meet later today. With views among markets, we could be hearing news on their QE program being widely speculated about for some weeks now; this could be a blow to the foreseen recovery previously implied. They meet today at lunchtime with the announcement coming at 12.45pm and subsequent press conference at 1.30pm where market experts can fire questions at Mario Draghi, the ECB president and hear their statement about their current monetary policy stance. This often brings big swings in the rates from statement to question to question, so be prepared for similar today.

From there, all eyes will focus towards the evening’s exit polls around 10 pm, where Currency Index will be ready to action any trades clients may need should they not fix their rate during the day’s trading session. We are then back open early doors on Friday morning, with trading lines open from 6 am to tackle the aftermath of the results as we should be all but done with declarations from around the UK.

Apart from the ECB announcements, we also see EU GDP released at 10 am and Canadian new house price index, financial systems review and a speech by Bank of Canada governor Poloz, so those with Euro or Loonie requirements specifically should stay in touch with the team here throughout the day. We don’t know how the voting will go and we have key data releases in the meantime, so make sure you don’t get caught out and contact Currency Index today for some friendly guidance and to discuss the various contracts available to secure your trade.