UK elections: Market pricing in the base scenario of a ‘hung parliament’ – Blueprint Capital

FXStreet (Barcelona) - The Head of FX at Blueprint Capital, suggests identifying the worst possible scenario to trade GBP besides the already priced in base case of a hung parliament and future negotiations.

Key Quotes

“Attention for the European FX markets today will be on the U.K. election. The market seems to have already priced in a base-case scenario of a minority government, a hung parliament, and a period of negotiation. So if you intend to trade GBP, perhaps best to try and identify what could be a worst outcome than the base scenario? Here’s one we can throw out there: unexpectedly high voter support for UKIP!”