8 May 2015
UK election update: Tories outperform, and so does GBP – Investec
FXStreet (Barcelona) - The Investec Team mentions that GBP/USD has outperformed today after news emerged that the Conservatives are likely to remain in power in UK.
Key Quotes
“With 521 of the 650 seats (6.40am) now counted a picture is clearly emerging that is consistent with the main exit poll released last night. To re-cap that exit poll had seat projections at Conservative 316, Labour 239, Liberal Democrat 10, SNP 58, UKIP 2, Plaid Cymru 4, Green 2, Others 19, with the Tories having vastly outperformed (and Labour and the Lib Dems underperformed) pre-election poll expectations.”
“On the current ‘live’ count we have the Conservatives at 230, Labour 208, Liberal Democrats 6, SNP 55, UKIP 1, DUP 8, Others 13. This is a truly remarkable election result.”
“The news that the election is likely to see the Conservatives remain in power has seen UK domestic markets jump. Sterling has strengthened across the board with GBP/USD seeing a huge 2 ½ cent jump since the first exit poll at 10pm last night, with the pair now standing at $1.55, its highest level since late February.”
“A similar move has been seen against the euro, with EUR:GBP now standing at 0.724 from 0.739. UK equity markets are also set to see enjoy a positive day, with markets pricing in an 80 point jump in the FTSE 100 at the open, on the prospects of a more market friendly Conservative government.”
“Whilst the mood in UK markets is one of relief, note that any Conservative government that runs on a thin majority, or with the support of a small coalition/alliance ally, could, as the term runs on, see that margin removed.”
“Readers recalling the April 1992 election will remember that John Major’s majority of 21 was eroded over time. That would still leave the spectre of an earlier than scheduled election on the table and would make the passing of major legislative changes challenging.”
Key Quotes
“With 521 of the 650 seats (6.40am) now counted a picture is clearly emerging that is consistent with the main exit poll released last night. To re-cap that exit poll had seat projections at Conservative 316, Labour 239, Liberal Democrat 10, SNP 58, UKIP 2, Plaid Cymru 4, Green 2, Others 19, with the Tories having vastly outperformed (and Labour and the Lib Dems underperformed) pre-election poll expectations.”
“On the current ‘live’ count we have the Conservatives at 230, Labour 208, Liberal Democrats 6, SNP 55, UKIP 1, DUP 8, Others 13. This is a truly remarkable election result.”
“The news that the election is likely to see the Conservatives remain in power has seen UK domestic markets jump. Sterling has strengthened across the board with GBP/USD seeing a huge 2 ½ cent jump since the first exit poll at 10pm last night, with the pair now standing at $1.55, its highest level since late February.”
“A similar move has been seen against the euro, with EUR:GBP now standing at 0.724 from 0.739. UK equity markets are also set to see enjoy a positive day, with markets pricing in an 80 point jump in the FTSE 100 at the open, on the prospects of a more market friendly Conservative government.”
“Whilst the mood in UK markets is one of relief, note that any Conservative government that runs on a thin majority, or with the support of a small coalition/alliance ally, could, as the term runs on, see that margin removed.”
“Readers recalling the April 1992 election will remember that John Major’s majority of 21 was eroded over time. That would still leave the spectre of an earlier than scheduled election on the table and would make the passing of major legislative changes challenging.”