Limited Drop of Sterling in the Global Market Amid U.K. Parliamentary Election

On Friday, the British pound slumped following vague results without a particular party that dominated that election. Hence, investors are trying to weigh on risks including both events in the United States and Europe. As a result, the cable dropped by 2 percent amid the political problem that could hamper the Brexit talks and cause more uncertainty which will begin in more than a week.

Yields on 10-year gilt dropped by 3 basis points to 1.00 percent while the FTSE futures recovered as it gained 0.2 percent bringing hopes up to economic progress. The e-mini futures for the S&P 500 has a lesser impact as it increases by 0.1 percent.

The single currency slid overnight following the announcement of ECB forecast to ease inflation but did not talked to tune down the massive bond-buying campaign pushing bond yields to multi-month lows.  Its effect in the global investment market can not be defined as it represents just 2.5 percent of world GDP.