Peel back the onion layers of uncertainty around Britain’s election tomorrow, and another doubt emerges. The first of the known unknowns is which party will win the most seats, the very heart of political betting.
In many European countries the second uncertainty is standard: what coalition or minority government will emerge from the political horse-trading? British voters do not like political parties breaking solemn pledges, but if they want stable leadership they had better get used to it.
Implied volatility on sterling has already leapt amid worries about these two uncertainties (see chart).
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