Preferable to be short sterling on Friday morning, SocGen says
A possible Labour/SNP combine looks big enough to govern, based on the most up-to-date poll soundings, but how long would it take them to dislodge Mr.Cameron from Downing Street?
GBP/USD
$1.2620
11:24 16/11/24
On the other hand, and also on the basis of current forecasts, a Tory-Lib Dem coalition would not have enough votes to form a coalition, so they would need to be able to muster enough support from the small parties. Would they be able to gather enough support? "That's unclear but they may have enough votes to try," is the answer from Kit Juckes at Societe Generale.
"In the meantime, if the expression of intent from clients is a gauge of anything, there is more appetite to buy GBP after the result is known, than to sell it. For choice, I would rather be short sterling and long long-dated gilts, particularly if the gut reaction in the market is to buy the currency," Juckes adds.