UK markets have surged higher in the early hours of Friday, with both the FTSE and Pound enjoying an unexpected round of bullish momentum as the initial results from the UK general election suggest that the overall outcome is going to be nowhere near as close as everyone was previously anticipating.
All expectations were for both the Conservative and Labour party to each command around a third of the votes, but these expectations have been very distant to reality, and it currently appears that an unlikely Conservative majority government is going to be unveiled.
The downside risks that the Pound was previous facing over the possibility of a hung parliament have been erased and investor concerns over the risk of political instability have reduced significantly. Can the Pound continue to charge higher? I personally doubt it. Although the Pound has enjoyed a round of unexpected bullish momentum, I am expecting gains to begin tailing off fairly soon. This will be due to an admission from investors that it is only going to be a matter of time before attention shifts and questions over a possible Brexit, or increased potential for another Scottish Referendum need to be answered.
Follow Jameel on Twitter @Jameel_FXTM
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