Possibility of hung parliament in UK to delay Brexit talks: Angel Commodities Broking

Views by Mr. Prathamesh Mallya (Chief Analyst - Non-Agri Commodities & Currencies, Angel Commodities Broking):

"Britain has been dealing with a host of uncertain events starting from Brexit to Theresa May's abrupt decision to call elections. The after-effects of these events could be seen with the Pound's price trend. GBPINR spot has plunged by 0.67 percent since the start of January 2017.

The ongoing hullabaloo with respect to UK's snap elections has further intensified the problems for Britain and its currency. The UK Prime Minister Theresa May had called for an early general election in a bid to win majority seats and avoid any opposition to her Brexit plans. However, her gamble to win the majority seats appear to be in trouble as the exit polls indicate that Theresa May's Conservative party was falling short of a majority.

To win the elections, a party needs to conquer at least 326 seats. Currently, the Conservatives have won 297 seats and the Labour Party is dwindling with 252 seats. It is quite clear that the Monarchy country has to deal with hung parliament.

What happens next is both the leading parties have to form a coalition with other minority parties and form a new government. A lot has happened in Britain and a lot is going to happen which the Sterling Pound has to bear the brunt of in the near term."

Source : Equity Bulls

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