July 04, 2024 at 11:03PM
A note from Bank of America prior to the election said that it appeared to be a non-event for UK markets. Which was correct given the opinion polls overwhelmingly favouring the new government.
UK exit poll tips a solid win to Labour, 410 seats – new UK government incoming
GBP is little changed after the UK election exit poll
BoA concluded by saying one factor which will support GBP will be the election result “as an indicator of political stability relative to elsewhere”. Correct.
No one is going to predict smooth sailing for incoming PM Starmer ahead, but a 170-odd seat majority is a solid base to work from. Already I’ve seen hand-wringing on social media about the far-right party taking 13 seats. 13 out of 650 is like worrying about a pimple on an elephant’s … as the Brits would put it …. arse. Don’t lose sight of the big pic (apologies re mixing metaphors).
Elsewhere we’ve got governments with wafer-thin majorities cobbling together policy as best they can. Staremer can take some hard decisions if that’s the path he chooses.
GBP update, yeah, unfussed by the election result given how well telegraphed it was:
This article was written by Eamonn Sheridan at www.forexlive.com.
