What will happen to sterling if Jeremy Corbyn’s Labour wins the General Election? Labour has surged in the polls in the last fortnight, closing the Conservative party lead to as little as five points. Before everyone gets too market traders institute forex reviews, it should be remembered that Labour polling surged before the last General Election in 2015. Meanwhile, Labour leader Jeremy Corbyn’s personal approval ratings are still wince-inducingly behind Prime Minister Theresa May’s.
Yet stranger electoral things have happened in the last year than a Labour General Election victory. What would actually happen to sterling if Corbyn emerges as the next leader of our country? And could it even lead to a stronger currency? Labour majority is not a base case for most is something of an understatement. Nevertheless, when pushed there is little doubt about the immediate effect of a Labour victory on currency markets: a knee-jerk movement downwards.