Sterling is pretty steady with under 2 days until the election
It's all been a bit disappointing so far. I was hoping for a fear move flush out of sterling, like we saw for the Scottish election but we've had other news and events to keep the price on its toes
In essence the market may be encouraged that one way or another a deal may be done between parties so that a government is formed at the first time of asking. The details will be traded after perhaps.
There's still time for some fear trading to come into the pound though, so it's wise to be alert
As for the current state of play, the latest Ashcroft poll just out puts the Conservatives on 32%, two points ahead of Labour, down four points on last weeks poll. Labour stays at 30%
The latest BBC poll of polls tracker has Labour on 33% and the Conservatives on 34%
The Guardian's seat projections still show that both Labour and the Conservatives will have to strike a deal to get into power, and that the SNP is still going to have a key say in that
If the market is thinking the election is going to be an easy case then I think it's underestimating the risk a hung parliament will bring, should we get one. If the election is settled favourably with an overwhelming majority or suitably acceptable coalition then a pop in the pound will likely follow.
