FX: Weaker sterling here to stay

From strong and stable to weak and jittery, the pound bore the brunt of the surprise UK general election result, but despite May’s quick move to form a working coalition government, sterling will likely stay soft, say analysts.

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Sterling’s fortunes have reversed since the announcement of the snap election in mid-April, burning those who had priced in an appreciation of the rallying pound.

Prime minister Theresa May was predicted to comfortably win a Conservative majority, but seven weeks is a long time in politics, and the Tories ended up scoring an own-goal by losing 13 seats.

The result left a hung parliament, as no party won enough seats – 326 or more – to secure an outright win.

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