UK election: Scottish National Party is not over with

UK election is one of the top events of the year that might generate tensions and high volatility in the market. The date for election is set at May 7 2015.

Scottish National Party (SNP) -

• Last September, market was tense over the referendum on Scottish Independence that was held on 18^th of the month last year. Majority voted for the union with Britain, but the result was quite narrow with 55% voted against independence that led first minister Alex Salmond to resign who heavily campaigned for the independence.

• Nevertheless, it would be premature to assume that the independence issue and SNP party is done with. Nicola Sturgeon, Deputy first minister has taken up the role after Mr. Salmond and expressed her commitments towards more power for Scotland.

• Despite the defeat the party remained extremely popular among Scottish people. Recent poll suggests that the party could win nearly 56 among 59 of the seats allotted for Scotland in the upcoming election.

Impact -

• In Britain latest polls suggest that the current conservative party government and challenger labour party is running neck to neck.

• This might put SNP in an advantageous position, as it would hold the balance of power.

• Probabilities are high that SNP would support the Labour party that would give rise to left wing politics and policies in UK and more powers to Scotland.

• Real horror for Pound and UK is the true ambition of SNP - Scottish Independence through another Referendum.

Pound is currently trading at 1.5085 against dollar could feel further heat along with FTSE as the election date closes in.