Friday, 8 May 2015

Friday, 8 May 2015

UK General Election update

FTSE 100 and £ surges on election outcome............ It looks like a Conservative victory.

The financial firm UBS wrote in a research note: "It appears that we will avoid weeks of uncertainty and horse-trading as there is the ability for the Conservatives to form a government perhaps relatively quickly."

We have been saying for weeks that the £ / € rate has been volatile because of the threat of a "hung" parliament and another coalition. The markets likes certainty, consistency and stability and this will happen as the Conservatives are returned to power.

The British pound is trading close to a two-month high against the US dollar. The £ is surging against the Euro, with a gain of 1.5% this morning. Analysts say sterling jumped because the projected result meant the government's agenda was likely to stay consistent.

Now is a great time for UK buyers to invest in France. The £ looks likely to strengthen further.   For our sellers returning to the UK, you need to speak quickly to our currency dealers to talk about locking into rates before they move further against you.

Peter Elias
05 55 28 46 40

image copyright: p.lange
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