GBP Plummets as Exit Polls Suggest No Majority

Who’s Going to Have a Worse Night, GBP or Theresa?

The initial exit poll suggest it’s been a catastrophic campaign for Theresa May, with the Conservatives on course to fall short of an overall majority having been 20 points in the lead in the polls only a few weeks ago.

Sterling has fallen off a cliff after the initial exit poll. A hung parliament is the worst outcome from a markets perspective as it creates another layer of uncertainty ahead of the Brexit negotiations and chips away at what is already a short timeline to secure a deal for Britain. GBPUSD fell more than 2 cents immediately after the exit poll and looks very vulnerable to further downside.

Now we move onto the results in the coming hours to see whether the exit polls do in fact accurately represent the voting. We should get the first result very soon and should it confirm what we’re seeing, it could be another very bad night for GBP.

OANDA fxTrade Advanced Charting Platform

GBP/USD – Pound Edges Lower on Election Day

Super Thursday – Politics and Monetary Policy Take Center Stage

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.