Has the general election had an impact on selling foreign money?

The General Election has provided many twists and turns over the past couple of days thanks to the hung market. The pound fell in value by 2% as soon as the exit polls were revealed.

With Theresa May unable to form a government on her own accord, she has aligned with the Democratic Unionist Party (DUP). The Northern Irish party won 10 seats in the election and have combined with the Tories to form a government.

The markets increased in value once again upon the announcement as the Conservatives are now able to start Brexit negotiations as planned. The FTSE 100 rose by 1% on Saturday thanks to the quick formation of a government. While it’s still recovering from the original decrease in value from Thursday, the pound will be expected to increase to similar figures from the start of the week.

As commented by Peter on CompareHolidayMoney.com, the result of SNP losses will have pleased the markets due to threats of IndyRef 2, and a break-up of the United Kingdom:

“Many are saying IndyRef2 is dead. This is music to the markets ears. They never wanted to see the UK split up. Every time Scotland moves towards independence Wales looks a little step closer to the same decision. This knock back to independence will dampen those thoughts.”

In terms of impacts to selling overseas currency, it is clear you’re going to get a worse rate than at the start of the week. This is due to the weakness of the pound after Thursday’s election.

The advice is similar to that of purchasing currency. If you are in no rush, you may wish to consider waiting for the markets to improve. This shouldn’t take too long with a hard Brexit looking tougher thanks to the DUP’s involvement with government. A more generous and lenient Brexit should make for the markets feeling more likely to invest.

With civil unrest taking place from the left with Tories working with the unpopular DUP, it is also worth seeing whether anguish continues.

Posted by Matthew Weston

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