Cable up as the Tories look certain to win
City Index May 8, 2015 2:40 PM
<p>The Conservatives look certain to hit the mark as the election draws to an end, the effect in the market was as expected as GBP rallied […]</p>
The Conservatives look certain to hit the mark as the election draws to an end, the effect in the market was as expected as GBP rallied early on from the exit polls that hit at 10pm BST showing a clear win for David Cameron.
The first reaction was for GBP/USD to gap 100 points from 1.5250 to 1.5350 and then carry on to hit highs of 1.5522. Since then we have seen it calm down by falling a further 100 points and it’s still trading very actively between 1.5400 and 1.5500, as results and comments hit thick and fast. There’s more volatility to come as the result is still being decided and now the political views come in. Questions still remain over how the EU referendum going to affect the pound, and how the SNP landslide victory in Scotland will affect the United Kingdom.
To add to an already exciting night and morning, we will get the US non-farm payrolls released later this afternoon. This is expected to gain to 224k from a poor read last month of 126k. A big day for the US, as we gear up for the rate lift-off which once was expected in June. This may be pushed back or bring closer the traders’ views.
Support 1.1170-1.1110-1.1050 | Resistance 1.1225-1.1290-1.1325
Support 119.20-118.70-118.40 | Resistance 120.10-120.40-120.90
Support 1.5050-1.4900-1.4750 | Resistance 1.5500-1.5570-1.5600
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