In a note from Bank of America ahead of the election, it was said that the election seemed to be a minor event for the UK markets. This was true given that opinion polls were overwhelmingly in favour of the new government.
Bank of America concluded by saying that one factor that will support the pound is the outcome of the election “as an indicator of political stability compared to other places.” And that is true.
No one can predict the success of the next Prime Minister Starmer, but a majority of around 170 seats is a solid base to work from. I have already seen concern on social media about the far-right party getting 13 seats. Thirteen out of 650 seats is like worrying about a pimple on an elephant’s bottom… as the British say… Don’t lose sight of the big picture (sorry for the metaphor mix-up).
Elsewhere, we find governments with narrow majorities trying to cobble together policies as best they can, and Starmer could make some tough decisions if that is the path he chooses.
Sterling Update, Yes, Not Interested In Election Outcome Given How Clear It Is:
