mardi 17 mars 2015
Political storm clouds eclipse Sterling
Posted on 20:06 by nice news
Although political mood swings can be violent and unexpected, all the probable outcomes for May's UK general election are likely to be Sterling negative with a combination of economic concerns, government instability and EU referendum uncertainty in varying proportions depending on the precise outcome. Sterling is likely to come under pressure over the next few weeks as risk premiums increase with a 4-5% trade-weighted index decline realistic as overseas funds head for the exit or hedge positions further.
Wednesday's budget statement is likely to be seen as a political exercise which fails to address underlying vulnerabilities and any Sterling gains on sugar-coated headlines are likely to fade quickly. In relative terms, UK fundamentals will still be seen as attractive which will lessen the threat of even more substantial losses.
As star-gazers prepare to descend on Northern Scotland for the near-total solar eclipse this Friday, the political dark clouds of May's UK general election are drawing closer with Scotland once again under the microscope following last year's dramatic independence referendum vote. This national election is set to be the most complex in recent times and not the traditional binary option between Conservative and Labour.
Latest national opinion polls continue to point to deadlock with neither The Conservatives or Labour able to push above 35%. With Chancellor Osborne due to present his last budget proposals of this parliament on Wednesday, it would be extremely surprising if there are no voter-friendly measures including tax cuts and further pension reform. The government enjoys a healthy poll lead over the opposition on economic management and should
Wednesday's budget statement is likely to be seen as a political exercise which fails to address underlying vulnerabilities and any Sterling gains on sugar-coated headlines are likely to fade quickly. In relative terms, UK fundamentals will still be seen as attractive which will lessen the threat of even more substantial losses.
As star-gazers prepare to descend on Northern Scotland for the near-total solar eclipse this Friday, the political dark clouds of May's UK general election are drawing closer with Scotland once again under the microscope following last year's dramatic independence referendum vote. This national election is set to be the most complex in recent times and not the traditional binary option between Conservative and Labour.
Latest national opinion polls continue to point to deadlock with neither The Conservatives or Labour able to push above 35%. With Chancellor Osborne due to present his last budget proposals of this parliament on Wednesday, it would be extremely surprising if there are no voter-friendly measures including tax cuts and further pension reform. The government enjoys a healthy poll lead over the opposition on economic management and should
Political storm clouds eclipse Sterling
Categories: Political storm clouds eclipse Sterling
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