One thing that you can always be guaranteed of whenever there is a general election in any country, and that is if the pools suggest the outcome of that election is going to be tight, that will have something of a dramatic effect on the value of that country’s currency!
That is something that is happening over in the UK at the moment, for today is voting day and as such everyone old enough to vote and legally entitled to vote in the UK is being actively encouraged to do so.
Whilst the betting markets suggest that the Conservative will win, it is not a foregone conclusion for there is a risk that by the time the polling stations close in the UK, and the votes have been counted up there may be a hung parliament.
Forex traders are therefore hedging their bets on GBP today, for if the Conservative do win and by a huge majority then the value of GBP is likely to increase quite spectacularly, however if the result of the vote is a hung parliament many experts predict a 7% drop in the value of GBP against currencies such as the Dollar.
The polls running up to the election have suggested a large lead for the Conservatives, however in the run up to the election and the day of the election have been getting closer the polls have suggest the Conservatives may not win a clear majority, which is the nature of polls I suppose!
It is not only Forex traders who will want to cash in from today’s election of course, as anyone with a connect to the internet either via their home computer or via a mobile device is going to find no shortage of odds being offered to them by betting sites.
A quick look at the currently betting markets shows that anyone who does think that the Conservatives will own the UK General Election can get odds of 1/16 meaning for every 16.00 in whatever currency you place that bet in you stand to win just 1.00!
Anyone who thinks that Labour have a chance of winning will find odds generally on offer at most major betting sites of 8/1, so a 1.00 wager will see anyone placing such a bet having the chance of making an 8.00 profit if Labour do win.
There are of course plenty of other Political Parties that could be voted in, however the odds on them doing so really do dictate their respective chance of winning! UKIP, The Green Party and The Liberal Democrats have odds attached to them of a whopping 1000/1, so you could be in the money if you do place a bet on any of those three parties, and by some sheer fluke they do win the election!