EUR/GBP: range bound with sentiment stabilizing for the Tories

Currently, EUR/GBP is trading at 0.8761, up 1.22% on the day, having posted a daily high at 0.8827 and low at 0.8643.

Pound plummets as exit poll shows hung parliament – ING

EUR/GBP has lost some of the edge with the Conservatives doing a little better in the North than the Tories received in the exit polls. However, the concern for them is that UKIP seats are being split in less favour of the Tories. Labour are picking up these votes and it might even be the case that some of the Tories are switching to Labour.  

There has been some support for the pound due to a better than predicted performance for the Tories in the North but it is so far not enough to repair the damage done to the pound – we still have a long night/day ahead of us. It will be critical for the Tories to perform far better in their typical stronghold constituencies. However, should the trend of the participation rates being higher than normal, there is potential that the younger generation, 18-24 years olds, have come out in droves and voted labour in those regions.  

EUR/GBP levels

The volatility remains within a recent range between 0.8650/8832, however, 0.8850 guards a rally to 0.9050 on the wide. 0.8650 guards 0.8600 and 0.8520 on the wide to the downside. 

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