Good morning,
Today, Britain goes back to the polls for the first winter election since 1923 in what is likely to be the closest fought election since, well, 2017. Overnight, a final Comres poll showed a tightening to a mere 5 points for Johnsons Conservatives, luckily for the pound, stability has been found as we approach the election, chiefly from the more universally respected MRP poll as mentioned in yesterday’s article “MRP poll snaps sterling back to reality”.
Starting at 10pm, when the exit poll releases, the tone of the UK’s economic policy for the next five years, at least, will be decided. The outcomes predicted vary in their impact on sterling, as laid out in our possible outcomes for the pound article, with the downside risk becoming starker as the market awaits the results this evening and through the night.
Simply put; just as in 2017, the market has been giving sterling a lift believing a Conservative majority is imminent – if this is not realised or even if it is, but not by enough, the pound has far more room to fall than it has to rise.
Polls at the end of the days are only predictions and they do get it wrong, so whatever the results delivered tomorrow, the rates you see today, you will not see tomorrow.
If you have currency exposure over the next 24 hours, it is vital you contact your account manager today to discuss next steps – it could be the difference of thousands of pounds, euros or dollars in either direction in a matter of minutes. Either way, we have plenty of strategies to assist.
Here are the rates as of the time of writing (9.45am):
GBP-EUR:
- £1000-500k – 1.1804 (0.50%)
- £500k-5m – 1.1834 (0.25%)
- £5m – 1.1846 (0.15%)
GBP-USD:
- £1000-500k – 1.3140 (0.50%)
- £500k-5m – 1.3173 (0.25%)
- £5m – 1.3188 (0.15%)
Have a great day,
Author: Joshua Haden-Jones, Senior Relationship Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available online.