UK Elections too Close to Call

The end is near in what turned out to be one of the closest election races in the UK. After a majority of voters cast their ballot supporting one of the two major parties, this election is witnessing a rise of the minor parties. In some surveys the balance still favours Labour and Conservatives, but gone are the days of their 95 percent combined share. Now as much of the third of the electorate is seeking a different alternative. This of course complicates matters when it comes down to forming a government. The election will be won by either Labour or Conservative but in such a tight race a ruling majority is out of the question. Labour leader Ed Milliband has ruled out reaching out to the Scottish National Party to form a government if they maintain their current lead in the polls over the Conservatives.



The GBP/USD has not been immune to political indecision. With softer data out of the United Kingdom the pound has struggled even against a weaker USD. The one month period ahead of the election has put the Bank of England in a “no comment” zone for fear of influencing the decision of British voters. The GBP/USD has broken the 1.52 price level awaiting important employment data out of the U.S. and the end of a close electoral race.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza