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
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.