Banks on trading GBP
Voting in the UK will end Thursday at 21:00 GMT. By this time the first exit polls will be already available. The official results will be released by 05:00 GMT the next morning.
BNP Paribas: The uncertainty will remain after the election, so don’t hurry to sell EUR/GBP.
UBS: No party will gain decisive advantage to form the government on its own, so further negotiations to form a coalition starting on Friday will be important. Unless there’s a surprise outcome, which is unlikely, GBP/USD will remain in the 1.5200/5500.
Credit Suisse: We maintain GBP/USD long from 1.5125, with a stop at 1.5030, and a target at 1.5480.
Bank of Tokyo-Mitsubishi UFJ: With political uncertainty set to rise over the next week or so depending on how long it takes to agree upon a working government, the pound is likely to be subject to some modest downside risk in the near-term. If increased uncertainty weighs more heavily on the pound in the near-term, it could create an attractive opportunity to buy the pound on dips.