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UK Election 2017 – The Results Are In
The people of Britain have spoken, the results from the UK Election are in and Britain is more divided than ever. When Theresa May called the Snap General election back in April, it was predicted that The Conservative Party will win the election by a large margin but it all began to change when all parties started publishing their manifestos and started campaigning across the country.
Now it looks like calling the election has backfired on Theresa May, she was seeking a mandate to go into the Brexit negotiations to deliver a ‘hard’ Brexit but instead she has got a hung parliament, which is the last thing Mr’s May expected when she made the announcement.
What is a Hung Parliament?
Hung Parliament is an expression used to describe a state of a parliament when no single political party (or bloc of allied parties) has an absolute majority of seats in the parliament. It is worth noting that this has only happened twice since 1929 so Britain is facing more uncertainty.
2017 General Election Result*
After the election results were announced, Theresa May had to look at options on what she will do next. A few suggested she should resign as the result of the election was a ‘disaster’ for Mr’s May according to SNP (Scottish National Party) leader Nicola Sturgeon she said, “this is a disaster for Theresa May, she called an election clearly very arrogantly thinking that she was going to crush the opposition, sweep everybody aside and cruise to a landside majority, her position is very, very difficult.”.
*631/632 constituencies called, Kensington awaiting third recount at the time of the article being written
On Friday afternoon, Theresa May met with the Queen at the Buckingham Palace to seek permission to form a government with the Conservative ‘friends and allies’ at the Democratic Unionist Party (DUI). DUI have stated they will enter formal talks with The Conservative Party to form a minority government. One thing is for sure – a lot will happen over the next few weeks, especially with the Brexit negotiations beginning shortly, Theresa May will have to get things done quickly to stabilise the situation she has found herself in.
Forex – GBPUSD
When the election was called by Theresa May, we saw the Pound strengthen against the US Dollar but it was a different story when the exit polls came out after the voting was closed at 10 PM London time. which suggested a hung parliament and it was right. We saw more than 1.5% drop for the Cable and reach its lowest point for 2 months.
What’s next for the Cable? We will see over the next couple of weeks when it will be determined on how the British government is going shape up.
Source: GO Markets MT4
Indices – FTSE100
As the Pound weakened, FTSE100 Index which is made up from largest British companies climbed and finished the European session at 7525.
Source: GO Markets MT4
With the shock election result and the Brexit talks looming, the future of United Kingdom looks more uncertain than it was before and it is worth keeping up with further developments as it will impact the financial markets moving forward.
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