Home Business News The pound has ‘failed to react virtually at all’ after Labour’s landslide win

The pound has ‘failed to react virtually at all’ after Labour’s landslide win

5th Jul 24 7:53 am

Labour has won the general election with a landslide victory and the pound has held steady against the US dollar.

Sterling remained at 1.276 and the Euro held at 1.18 after the polling stations closed at 10pm on Thursday evening.

A Labour win has been as “expected” a “landslide” and the pound has “failed to react virtually at all.”

Chris Beauchamp, chief market analyst at trading platform IG, said, “The exit poll has provoked little volatility in foreign exchange markets, as the expected Labour landslide is duly predicted.

“The stability that would be provided by such a win would mean investors can cross ‘UK political risk’ off their list of worries for the time being.”

Economists for Investec Economics said a Labour majority was “well trailed” and the pound has “failed to react virtually at all.”

“What will matter more to markets, ultimately, is what a Labour government chooses to do if and when it takes office,” Investec added.

Rob Wood, chief UK economist for Pantheon Macroeconomics, said, “If the final results approximately match the exit poll, Keir Starmer would have a large enough majority to plot a stable policy course, which should unlock more business investment and attract greater foreign investment.”

“The recent rebound in the euro and stock markets suggests that investors are confident the National Rally will be kept out of power,” said Fawad Razaqzada, a market analyst for Forex.com.

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