Tomorrow the UK will vote in the snap election called by Theresa May several weeks ago. Originally the election was seen as an opportunity for the Conservatives to drastically strengthen their majority against a weak Labour party. However Jeremy Corbyn appears to have instigated movement among the younger generations and the current gap appears, according to recent polls, to only be a few points. Whilst there isn’t expected to be an upset the majority needed for May to vote a deal through at the end of the Brexit negotiations may not be increased.

Tomorrow there is likely to be exit polls from around 10am which could provide an early indication with regards to how the vote will go. Exit polls in the last election where the Conservatives and David Cameron steam rolled the opposition were completely wrong, so it can risky to base decisions on them.

Effect of the outcome

When Theresa May called the Election the GBP/EUR exchange rate jumped up to 1.195, however the tightening of the race has caused that to fall. If the Conservatives do achieve a significant victory I believe the rate will start to move north again. If there is a hung Parliament that would cause further uncertainty and is likely to cause the exchange rate to drop with market nervousness moving in. If Jeremy Corbyn is voted in with the Labour party there could be a significant drop. I believe this to be the case simply because the Brexit negotiation team would have to change and there could be huge changes in the UK’s economic policy. There is a lot riding on tomorrow.