Sterling could hit $1.21 in hung parliament, currency strategist says

by Dramelin 4:00 AM 0 comments

K currency could see further sharp falls as the full results of the General Election show a hung parliament and no clear winner from Thursday`s vote, according to one currency strategist.
Peter Chia, a foreign exchange strategist at the Singaporean multinational banking organization UOB Group, said that the move won`t be as bad as that seen after the Brexit vote last year, but he still predicted a sizable drop if the results show a hung parliament.
"Compared to Brexit day where the pair fell as much as 11 percent intraday, an election outcome is unlikely to share the same deep impact on the economy and currency as Brexit does," he said in a note released on Friday morning.
"A move half the magnitude this time round may bring us eventually to 1.
Before that, GBP/USD looks set to first test key support of 1.