Monex Europe: muted sterling reaction after UK hung parliament no surprise

With a new government more likely to go for a softer Brexit, the lack of a big sell-off is nothing shocking, says broker

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Theresa May: the prime minister lost her majority in parliament in last week's general election
Yui Mok/PA Wire/PA Images

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Sterling’s reaction to UK Prime Minister Theresa May losing her parliamentary majority in last week’s general election was rather muted, unlike the large drop seen a year ago in the wake of the referendum over membership of the European Union, says Ranko Berich, head of market analysis at Monex Europe, which topped FX Week’s three-month forecast table last week.

“I think [the subdued reaction] is because there’s already a great deal of political uncertainty and econo

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