{"id":160996,"date":"2019-12-03T09:00:55","date_gmt":"2019-12-03T14:00:55","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=160996"},"modified":"2019-12-03T07:10:46","modified_gmt":"2019-12-03T12:10:46","slug":"the-pound-will-drop-to-1-20-if-election-delivers-hung-parliament","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/the-pound-will-drop-to-1-20-if-election-delivers-hung-parliament\/","title":{"rendered":"The pound will drop to $1.20 if election delivers hung parliament"},"content":{"rendered":"
December 3, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The pound will fall to 1.20 against the U.S. dollar if the UK election delivers a hung parliament, predicts the CEO of one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

The prediction from Nigel Green, the founder and chief executive of deVere Group, comes following new polling that indicates that Jeremy Corbyn\u2019s Labour is closing the gap on Boris Johnson\u2019s Conservatives in next week\u2019s general election.<\/p>\n

Kantar demonstrated an increase of 5 per cent for Labour, meanwhile Ipsos MORI flagged a gain of 4 per cent, with the influential YouGov polls showing an increase of 2 per cent.<\/p>\n

Mr Green says: \u201cThe overwhelming majority of polls tracking the UK election clearly suggest growing support for Labour.<\/p>\n

\u201cThe surge for Labour in the recent polls, which raises the spectre of another hung parliament, has been reflected by the dip in the pound against the dollar, the euro and other major currencies.<\/p>

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\u201cSterling fell 0.2 per cent to $1.29 on Monday with the odds on a hung parliament being delivered next week narrowed to as low as 7\/4 – down from 9\/4 last week.\u201d<\/p>\n

He continues: \u201cI think we can expect the pound to fall to $1.20 in the event of another hung parliament.<\/p>\n

\u201cShould a Conservative majority be delivered, I believe the pound will reach $1.35.<\/p>\n

\u201cA hung parliament is likely to lead to another EU referendum and another Scottish independence referendum.<\/p>\n

\u201cThis would intensify uncertainty perhaps into 2021. Uncertainty is something financial markets loathe and this is why the pound has dipped on the news of Labour closing in on the Conservatives ahead of this crucial Brexit election.<\/p>\n

\u201cThe uncertainty would also serve to continue to dampen business investment which, of course, will drag on economic growth.\u201d<\/p>\n

He goes on to add: \u201cThe significant drop in the value of the pound could contribute to reducing people\u2019s purchasing power and a drop in UK living standards. Weaker sterling means imports are more expensive, with rising prices being passed on to consumers.<\/p>\n

\u201cA low pound is also bad news for British expats who get a UK pension or UK income \u2013 plus it\u2019s bad for holidaymakers and travellers abroad – with trips to Europe and the U.S. becoming increasingly more expensive.\u00a0 Even destinations such as Dubai and China are more expensive as their currencies are pegged to the U.S. dollar.\u201d<\/p>\n

The deVere CEO concludes: \u201cWhile it is most likely that a Conservative majority will be delivered, next week\u2019s election is looking like it will be closer than many had expected at the beginning of the campaign.<\/p>\n

\u201cShould Mr Johnson\u2019s Conservatives win the election, the pound and UK financial assets stand to gain with immediate effect.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The pound will fall to 1.20 against the U.S. dollar if the UK election delivers a hung parliament, predicts the CEO of one of the world\u2019s largest independent financial advisory organisations. The prediction from Nigel Green, the founder and chief executive of deVere Group, comes following new polling that indicates that Jeremy […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-160996","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/160996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=160996"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/160996\/revisions"}],"predecessor-version":[{"id":160997,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/160996\/revisions\/160997"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=160996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=160996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=160996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}