UK Elections too Close to Call

The end is near in what turned out to be one of the closest election races in the UK. After a majority of voters cast their ballot supporting one of the two major parties, this election is witnessing a rise of the minor parties. In some surveys the balance still favours Labour and Conservatives, but gone are the days of their 95 percent combined share. Now as much of the third of the electorate is seeking a different alternative. This of course complicates matters when it comes down to forming a government. The election will be won by either Labour or Conservative but in such a tight race a ruling majority is out of the question. Labour leader Ed Milliband has ruled out reaching out to the Scottish National Party to form a government if they maintain their current lead in the polls over the Conservatives.

The GBP/USD has not been immune to political indecision. With softer data out of the United Kingdom the pound has struggled even against a weaker USD. The one month period ahead of the election has put the Bank of England in a “no comment” zone for fear of influencing the decision of British voters. The GBP/USD has broken the 1.52 price level awaiting important employment data out of the U.S. and the end of a close electoral race.

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