Pound Climbs following Conservative Overall Majority in UK General Election

UK financial markets rallied on Friday as election results pointed to an outright victory for the Conservative Party, wiping away the uncertainty of a hung parliament.

The Pound has rallied across the board and was up 2% against the Euro, pushing EUR/GBP down to 0.7226p (GBP/EUR 1.3839). This put sterling on course for its biggest one-day rise against the single currency since early 2009.

The Pound rose against the US Dollar hitting a high of 1.5521 before settling back to trade around 1.5450.

Whilst the short term risks of a hung parliament have diminished, longer term risks remain namely the proposed referendum on the UK remaining in the EU and the possibility of another Scottish independence referendum following the Scottish National Party’s victory in Scotland.