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Dublin: 6 °C Thursday 21 November, 2019

The British Pound loves David Cameron

The UK currency jumped as it became clear the Conservatives were on the march to victory. Not such good news for Irish consumers though.

Image: Ben Birchall/PA

WORLD EVENTS CONSISTENTLY affect financial markets, either for good or ill.

Natural disasters and political upheaval can send stocks soaring, or kill off a company’s shares completely. And one thing that’s certain today is that the pound sterling very much wanted a Conservative victory in yesterday’s general election.

Yesterday’s landslide for the David Cameron-led party saw the value of the pound begin to jump as soon as it became clear the Tories were on their way to victory.

Given all polls before the election proper were convinced it was to be Labour’s day the stagnation of the pound before the dramatic jump makes more sense.

XE Source:

The phenomenon makes some sense when you consider the Conservatives would traditionally be seen as the party of free market capitalism.

Unfortunately, it makes things more expensive for consumers on this side of the water. But exporters will love it.

The precipitous fall of the Euro following Mario Draghi’s giant bout of quantitative easing earlier this year is another good example of how dramatic the effect of world events can be on financial markets.

The currency has been in freefall for months, with some suggestions it may fall as low as being worth just 0.8 against the US Dollar by the end of 2017.

Read: These forecasters have some dire predictions for the euro

Read: It’s not the best time to order stuff from America…

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