UK General Election: Markets, FX and Gold react
Theresa May’s decision to call a snap general election has seen the pound hit a two month high of $1.26 while the FTSE 100 has plummeted almost 100 points. Meanwhile gold has remained atop a five-month high following weeks of geopolitical tension around American intentions in the Middle East and over North Korea. This morning’s news that the UK will have a general election on June 8th saw the yellow metal creep up from $1,282 to $1,286 according to Kitco.
The above graph charts the pound’s jump against the dollar. Source: Bloomberg
Above: This morning’s FTSE drop source: OANDA
2017 will now see France, Germany and the UK go to the polls to elect their legislative and executives.
Political happenings this year. Source: ING
As the above illustration shows, the election falls against the backdrop of ongoing Brexit negotiations. June’s vote has been dubbed the ‘Brexit Election’ as the prime minister seeks a clear mandate to forward her vision to take the UK out of the single market. Westminster has been notably divided following last year’s landmark referendum. Labour, under Jeremy Corbyn, continue to lack clarity over Brexit, a position interpreted as a boon for the ruling Conservatives, now seeking to increase their slim parliamentary majority.
Link to this article: : http://www.goldmadesimplenews.com/analysis/uk-general-election-markets-and-fx-and-gold-react-13077/