UK Election Impact on Currency and Rates

The UK is likely to elect the Labour Party's Keir Starmer as the first non-Conservative Prime Minister in 14 years, with markets awaiting final UK election results and anticipating US Nonfarm Payrolls data. Expectations for US NFP figures to decrease in June could influence Federal Reserve rate cut decisions. The Bank of England is expected to cut rates in August, potentially leading to three rate cuts this year, impacting the GBP. Despite the UK election results, ING FX strategist Francesco Pesole does not anticipate significant changes in the Pound Sterling outlook, maintaining a bullish stance on EUR/GBP due to expected BoE easing.