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.
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Craig Erlam
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