GBP/USD Surges to 1.55 on Election Expectations

Most major currencies stuck to recent ranges ahead of U.S. jobs report later on Friday, but sterling seized the spotlight and rallied to its highest in just over a week on expectations that British Prime Minister David Cameron’s Conservatives will stay in office.

The Conservatives are set to govern Britain for another five years although they may fall just short of holding an outright majority, an exit poll showed, a result likely to trigger an in-out referendum on European Union membership within two years, while Scots could soon be pressing for independence again.

“An EU referendum would be the main longer-term focus. We have to wait to see what Cameron says, and then what kind of coalition government he assembles,” said Ayako Sera, senior market economist at Sumitomo Mitsui Trust Bank. “The pound is initially rising on the exit poll results, and pound volatility is also likely to rise.”


Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.