UK pound is surging today, thanks to the probable win for the Conservatives. It looks as though David Cameron is likely to remain Prime Minister, and that is leading to strong support for the sterling across the board.
Financial markets in the United Kingdom are celebrating the likely Conservative majority in Parliament. It looks as though the outcome of the UK elections will be David Cameron remaining Prime Minister. The FTSE 100 is much higher as a result, and the pound is gaining against its major counterparts on the Forex market.
For the most part, analysts are calling the current situation a “relief rally.” It looked as though there might be some uncertainty about the outcome of the UK elections, and there has been concern about what it would mean if a government couldn’t be pulled together quickly. Now, it looks as though things will be decisive, and that is helping the financial situation.
Gains for the pound are mostly due to expectations of consistency from the government. Some analysts think that the sterling could drop again, though, because there are concerns that if the United Kingdom does leave the European Union, it could affect trade.
At 11:08 GMT GBP/USD is up to 1.5429 from the open at 1.5246. EUR/GBP is down to 0.7271 from the open at 0.7389. GBP/JPY is up to 185.2850 from the open at 182.5650.
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