Well that wasn't the outcome many had predicted.......After a disastrous night for Theresa May in the polls, this morning we find the UK facing a hung parliament, and it has certainly taken the wind out of the pounds sails.
For the best dollar exchange rates click here.
After the Tories fell short of a majority the pound has suffered across the board, with the GBP/USD cross falling over three cents since yesterday evening. Following the release of the exit polls at 10pm last night Sterling dropped two cents from $1.2950 to $1.2750, and as the results started to come through the pound continued to lose ground.
As the London session opened this morning the GBP/USD cross had fallen further, and a one point had slipped to $1.2639. However, we have seen a slightly recover over the past couple of hours with the cross climbing back above $1.27.
GBP/USD graph
What next for the pound?
A hung parliament is not ideal, especially with Brexit negotiations due to start on the 19th. It has created even more uncertainty and uncertainty is the one thing investors and the markets hate.
Unless a coalition is formed quickly it is possible the pound will fall even lower in the coming days. Theresa May will now be working franticly to try and put a deal together with another party, and in the last few minutes we are already starting to hear from the media that May has already struck a deal with the DUP.
The DUP currently hold ten seats and if a deal has been agreed, it will give Theresa May enough to carry on as Prime Minister.
Do you need to buy or sell dollars?
If you have an upcoming requirement to buy or sell dollars in the coming days and are worried about the impact the UK election result will have on your transfer, contact us today for a free consultation.
As specialists in currency exchange we have a range of tools available to help protect you against adverse market movements, or target a rate that might not be currently available.
We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.
Click here to complete the contact form.
