The hotly contested UK elections are impacting the pound in Forex trading, sending the currency mostly lower today. Volatility ahead of the elections is expected to continue, with choppy performance being the norm.
Sterling is mostly lower today, struggling against many of its counterparts as volatility takes hold ahead of the elections on May 7. The elections are hotly contested, with the race being too close to call between the outcome between the Conservative and Labour parties.
It’s difficult to determine what will happen next since future economic policies are likely to be based on who comes out ahead on Election Day. As a result, many Forex traders are reluctant to trade sterling too far into the future, or enter into positions that might prove losers after the elections have passed.
However, there are expectations that things will calm down, one way or another, after the elections. Additionally, there is still the monetary policy of the Bank of England to consider, and the BOE isn’t likely to be swayed by whatever party is ruling.
At 10:39 GMT EUR/GBP is lower, falling to 0.7194 from the open at 0.7232. GBP/USD is lower, falling to 1.4930 from the open at 1.4958. GBP/JPY is down as well, falling to 177.6960 from the open at 178.0450.
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