GBP: Election impact is set to be limited – ING

The United Kingdom has election today, but we do not expect to change our view on the Pound Sterling (GBP) on the back of the election result, ING FX strategist Francesco Pesole.

We remain bullish on EUR/GBP

“Britain votes in its general election today. The latest polls confirmed the opposition Labour party has an approximate 20-point lead over the Conservatives and is projected to secure around 431 of the 650 parliament seats.”

“It is generally believed that exit polls have a very good predictive power for the final outcome in the UK. In the past five elections, they predicted the House composition with an average error of only four seats. We will publish a reaction note after the exit polls tonight.”

“All in all, we do not expect to change our view on the pound on the back of the election result. We still expect larger Bank of England (BoE) easing compared to market expectations are remain bullish on EUR/GBP on the back of that.”