Snap General Election News

As always, business and politics are combined, but in a year that’s taken so many people by surprise, another interesting development happened recently.

With Theresa May’s announcement of a June general election (something nobody was forecasting), it seems there’s now a possibility of a closer relationship with the EU than was previously thought. At least – that’s according to Ranko Berich, Head of Market Analysis at Monex Europe.

This is based on the significant boost sterling has received as a result of the Prime Minister’s announcement, with Mr Berich saying, “The explanation for this is simple: hard Brexit was previously almost entirely priced in to sterling, and today’s news introduces a sliver of doubt into the mix.”

To have announced the election, the government is indicating that it’s confident this move will prove to be a good one – strengthening its hand when it’s most needed. But Mr Berich echoes what we all know – that nothing is for certain when it comes to voters and the polls.

However, the announcement adds enough uncertainty into the political horizon to raise the possibility of a softer Brexit – aided by the boost to sterling. It remains to be seen.