News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • RT @macrodesiac_: If you know you know. https://t.co/W2LYqathr5
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -1.45% Wall Street: -1.78% FTSE 100: -3.03% France 40: -3.10% Germany 30: -3.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Yt3BFBNgjZ
  • ECB's Lagarde says Euro appreciation places downward pressure on prices, adds that the ECB are attentive to the Euro's appreciation $EUR
  • Italy regional vote - Exit poll sees centre left narrowly ahead of right in Tuscany vote
  • ECB's Lagarde says the ECB will open consultation on digital Euro within days
  • US President Trump says in regard to TikTok that China must give up on control or no deal
  • 🇨🇦 New Housing Price Index YoY (AUG) Actual: 2.1% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2020-09-21
  • 🇺🇸 Chicago Fed National Activity Index (AUG) Actual: 0.79 Expected: 1.95 Previous: 1.18 https://www.dailyfx.com/economic-calendar#2020-09-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.77%, while traders in NZD/USD are at opposite extremes with 72.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/LGODzLXvvD
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into the open of the week! https://t.co/chKtG7waxH
Pound Drop Masks Otherwise Chipper Mood After UK Election

Pound Drop Masks Otherwise Chipper Mood After UK Election

2017-06-09 06:32:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • British Pound sinks as UK election results in “hung parliament”
  • FTSE 100 futures hint at upbeat market mood after the vote tally
  • Hopes for “softer” Brexit may account for investors’ optimism

The British Pound suffered heavy losses in Asian trade. The currency plunged early in the session, losing nearly 2 percent on average against its major counterparts after an exit poll following yesterday’s UK general election predicted that no party will win an outright governing majority.

Interestingly, Sterling would end up treading water through the remainder of the session even as a steady stream of results confirmed that the vote will result in a so-called “hung parliament”. Further still, FTSE 100 futures are pointing optimistically higher having dropped as much as 0.76 percent earlier the day.

This is a curious outturn. One might have expected that prolonged horse-trading to cobble together a ruling coalition and perhaps even the prospect of another election before long would unnerve investors – especially with Brexit negotiations on the horizon – and drive an exodus from GBP-denominated assets.

Perhaps investors’ chipper mood reflects a sense that the election marked a rejection of the “hard Brexit” vision of Prime Minister Theresa May, with whatever coalition government emerges likely to take a softer stance that is less disruptive to the pre-referendum status quo.

With little else of note on the calendar through the end of the trading week, the markets may be preoccupied with digesting the UK election outcome. If hopes for a “soft Brexit” are in fact the main takeaway, the anti-risk Japanese Yen be pressured and the Euro might find a bit of support.

What do retail traders’ buy/sell decisions say about market trends? Find out here!

Asia Session

Pound Drop Masks Otherwise Chipper Mood After UK Election

European Session

Pound Drop Masks Otherwise Chipper Mood After UK Election

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES