Each Monday, we share the latest market commentary from our team to provide investors in UK-based real estate assets with all the supporting information needed to make the best investment decisions going forward. Due to the nature of market volatility at the current time, expectations and forecasts can vary considerably on a daily basis.
Jun 5, 2017
Threat of Hung Parliament Looms over GBP
Fundamental Forecast for British Pound: Neutral
- GBP/USD at risk of facing range-bound conditions ahead of the snap general election on June 8, amid the tightening race between the Conservative and Labour party.
- The outcome of the election may derail the near-term recovery in the British Pound should Theresa May fail to establish a more unified government.
- With ‘Brexit’ negotiations slated to start on June 19, a loss of confidence in the prime minister’s ability to deliver the UK out of the European Union (EU) is likely to drag on Sterling.
- The Bank of England (BoE) may continue to endorse a wait-and-see approach at the next policy meeting on June 15, and Governor Mark Carney & Co. may tame interest-rate expectations throughout 2017 amid the uncertainty surrounding the U.K. economy.
- The BoE may show a greater willingness to carry its policy stance into 2018 as officials now warn ‘consumption growth will be slower in the near term than previously anticipated.’
- The diverging paths for monetary policy may continue to foster a long-term bearish forecast for GBP, particularly in its pairing with USD.
Real estate assets always represent security for investors during times of economic and geopolitical uncertainty. United Property Invest specialises in UK-located income generating property assets, with solid fundamentals and stable returns that represent the perfect safe haven for your capital.
To find out more about our exclusive wealth-building opportunities, please feel free to contact our highly-qualified team of consultants by clicking HERE.