With limited data and events coming out of the U.S. on Friday, investors are expected to turn their attention overseas for their cues. One topic expected to dominate sentiment on Friday is that of the U.K. election outcome.
As voting results rolled out on Friday morning, it became apparent that the U.K. Prime Minister’s Conservative party didn’t secure a majority in the snap election – which had been called earlier this year with the hope of strengthening the party’s position in parliament.
Since no party secured an outright majority, Britain is facing a hung parliament. That means multiple parties have to work together to hammer out a coalition government. This can also delay, or hurt, upcoming Brexit negotiations, as well as affect May’s political future.
The news added pressure to the pound on Friday, which sank to a session low of $1.2632. It has since recovered some losses yet remains under pressure.