UK politics in focus - Nomura

Analysts at Nomura point out that UK politics has taken centre stage this week, with opinion polls showing continuing erosion of the Conservative lead as the Labour party gains support.

Key Quotes

“In the event of a Labour victory, we think the pound would at first head lower, as increased uncertainty would lead to reduced inflows. However, as austerity would be removed and “softer Brexit” hopes would return higher real yields may offset this and GBP would be higher.”