Pound plummets as exit poll shows hung parliament - ING
Analysts at ING explained that the official exit poll for the 2017 UK general election shows that risk of a hung parliament is now high, with the Conservative Party falling short of securing an overall majority.
Key Quotes:
"If the exit polls are right, a hung parliament would be the worst outcome for pound; it is already down more than 1.5% against the dollar in early trading and we would expect it to continue falling sharply as Asian markets open."
"Even if we account for an error of margin in the polls of +/-15 (as was the case in the 2015 election) – we doubt that a very slim Tory majority is sufficient enough to secure political stability in the short-term, at least to levels that GBP markets had priced in."
"Confirmation of a hung parliament and the failure to have a working government in place over the coming days means that the pound could fall to as low as 1.24 against the dollar."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
