GBP/USD could jump if LibDems are kingmakers

The incumbent Conservative Party and the challenging Labour will take the vast majority of seats in parliament. However, both parties are set to fall short of an absolute majority. The Tories are closer, with 314 according to the predicted outcome[1].

If confirmed, they could form a coalition with the LibDems 14 projected members in parliament and reach 328, above 326 needed for a majority. This was the coalition between 2010 and 2015. The LibDems could also join a Labour government alongside other parties.

14 seats out of 650 are just over 5%, a very modest representation. Nevertheless, their presence in government could be a game changer for Brexit. They could leverage their necessity in forming a government to impose a softer Brexit. Tim Farron has repeatedly claimed that they are the party of Remain.

Remaining in the EU does not seem like a viable option for the UK. The EU Referendum result was loud and clear.

Nevertheless, an ongoing participation of the UK in the EU Single Market could be a big relief and the pound could rise. We already discussed three reasons for a buying opportunity for GBP/USD[2].

What do you think?

UK elections – all the updates in one place[3]

Get the 5 most predictable currency pairs[4]

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/sqxM5jkigII/

from Online Forex Trading Resource
View thesource article here

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