Hung Parliament causes Pound to fall vs the Euro (Tom Holian)

After what has been a very long night the initial exit polls released last night at 10pm in the UK showed that the Tories would be unlikely to be able to form a majority government. The exit polls consisted of just over 30,000 and as we saw last year with polls they can be very wrong.

However, in this case we saw the polls come in very accurately and as of this morning the prediction of a hung parliament came true.

At the time of writing the Tories are on 314 votes and will fall short of what they need to form a majority.

This has caused the Pound to fall against all major currencies including against the Euro and today we are likely to see further movement for GBPEUR exchange rates. We have been open since 7am this morning and have already seen a huge amount of volatility overnight with the Pound dropping by 2 cents against the single currency.

The questions is what will happen next? The likelihood is that the Conservatives will try and form a coalition with the Democratic Unionist Party but this comes with its own problems as it means the coalition will only have a small number to make the majority.

I think today we’ll see further problems for the Pound against the Euro and it will be politics that will continue to dominate events for the currency markets. There have been calls for Theresa May to step down but I think this is unlikely as there is no obvious candidate to choose from.

If you would like a free quote when buying or selling Euros then feel free to contact me directly. Usually I would request that you email but today owing to the movement for a quicker response call me directly on 01494-787478 and ask for Tom Holian when calling.

Alternatively email me directly Tom Holian [email protected]