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After a surprising campaign, the UK election campaign ends and voting begins. What can we expect? Here are  two scenarios from Credit Suisse:

Here is their view, courtesy of eFXnews:

Credit Suisse FX Strategy Research outlines the key  scenarios for the UK elections on Thursday and the potential GBP direction for each of them.

1- “If the Conservatives win with a comfortable majority of 50 seats or more, there is scope for GBP to pop higher on the result and  we would look to sell GBP on such a pop, given our longer-term concerns over Brexit talks and the future for the UK economy.

2– Meanwhile,  a frustratingly tight win for the Conservatives, or results worse than that, would likely see GBP gap lower. But as some market participants believe this “bad outcome” actually raises the odds of a “soft Brexit”, we assume a bid would emerge that steadies GBP after its initial gap lower,” CS argues.

GBP/USD is trading 1.2905 as of writing.

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