Well done on completing the latest ReTrader session for the Student Investor Challenge. Remember there is only one more game left before we announce the winner of Round 2 and can unveil who takes home the £250 prize!
WHAT DID I TRADE THIS WEEK?
You were back with the FX team to trade GBP/USD, otherwise known as ‘cable’.
WHAT WAS THE EVENT?
You traded the UK election from the summer of 2017 which was one of the biggest events of the year.
A big surprise and a blow for Prime Minister Theresa May and the Conservative government.
The PM’s intention to increase her slim majority in Parliament backed fired and by captivating the youth vote Labour far outperformed expectations under Jeremy Corbyn. The result means we have what’s known as a ‘hung parliament’ and the Conservatives will now need to join forces with another political party in order to capture the number of seats required to command a working majority. This means a government that has enough power to govern.
Given the outcome was against what the pollsters had predicted we saw an aggressive re-pricing in the value of the Pound. The renewed political uncertainty also increases uncertainty on the ability for the government to negotiate Brexit smoothly given the loss of outright control in the Lower House of Parliament.
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