Published by Mark Smith-HalvorsenA hung parliament would give the government a more complete mandate to tackle the budget deficit, according to Moody's Investor Service.Speaking to the Financial Times, Arnaud Mares, the lead analyst for the UK at Moody's, said that a three-way tie between the major parties may prove a benefit to the UK economy."We do not think that a hung parliament will have a direct impact on the UK credit rating. If you had a fiscal plan agreed by a coalition, that could actually be quite positive, because it would imply broad popular support," said Mr Mares.In the second leadership debate last night (April 22nd), Nick Clegg was careful to dismiss speculation a translation of Lib Dems success in the pre-election polls into parliamentary seats would lead to financial catastrophe, as some critics have warned.All three leaders made commitments to collaboration to reduce the budget deficit and tackle other key issues in the event that the May 6th elections result in a hung parliament.The Moody's statement may well provide support for foreign exchange trading in the pound today as comfort to wary investors.For more information on international payments, visit our Smart FX site