Travelex says hung parliament is unlikely to cause disaster

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Travelex says hung parliament is unlikely to cause disaster

Thu 6th May 2010

The pound is not likely to go into freefall if the general election in the UK ends with a hung parliament, according to an expert from Travelex, who suggested that the money markets may even have already adjusted to such a prospect.

Mark Bolsom, head of the UK trading desk at the currency exchange firm, pointed out that opinion polls in the country have been pointing towards a hung parliament for a long time.

In his view, the real test will be what happens to the pound after the election, since there could be problems if a "credible deficit reduction plan" is not agreed.

But he suggested that the damage to sterling will not be as bad as many people had feared.

Mr Bolsom stated: "Certainly, I'd expect some turbulence against the dollar and euro tomorrow but sovereign debt fears in the Eurozone will help keep the pound stable."

The polling stations opened this morning (May 6th) for the general election, with results expected to be announced by tomorrow.

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