Mar02
The possibility of a hung parliament quashes the sterling recovery
By Alex Ellis
The political uncertainty and possibility of a hung parliament has all but destroyed the possibility of Sterling exchange rates continuing to recover. This followed the Sunday Times article over the weekend in which a YouGov poll showed that the Conservatives lead over Labour has now shrunk to two points, this maintains the threat of a hung parliament and therefore was seen as a negative for Sterling.
The possibility of a hung parliament has raised question about the future of Sterling exchange rates, especially as the prospective governments seem to be holding back their fiscal policies to combat the current £174 billion debt.
Many analsyts shrugged off the possibility of Sterling reaching parity against the Euro however this seems ever more likely.
Archived in: British Pound, Euro
