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Cable Surges Into Green For 2015 As Post-Election Euphoria Continues

Tyler Durden's picture




 

GBPUSD is now up 3 big figures since the first exit polls hit, testing 1.5550 this morning and back to unchanged for the year. While initial fears of Brexit stymied the response to the Tory victory, it appears trader are pressing for stops above 1.5550 seeing more room to run here before Brexit possibilities begin to weigh.

Cable back to unch for 2015...

 

Running stops up to 1.5550...

 

As Bloomberg notes,

The pound rose for a third day versus the euro after surging at the end of last week when the U.K. general election unexpectedly produced an outright majority for the Conservative Party. While the Tory victory ended investors’ concern that drawn-out talks would be needed to form a government, it signaled deeper cuts to government spending that may dim the short-term growth outlook.

 

Investors are awaiting the BOE’s Inflation Report on Wednesday, which will be the first comment from officials after an election-campaign purdah.

 

“The fear is that fiscal austerity could lead to a sustained growth underperformance which will delay and temper the extent of BOE tightening,” said Valentin Marinov, head of Group-of-10 foreign-exchange research at Credit Agricole SA’s corporate and investment-banking unit in London. “My hunch is that the BOE will maintain a fairly constructive view on the U.K.’s longer-term inflation and growth outlook. The pound could extend its gains in the wake of the Inflation Report.”

Charts: Bloomberg

 

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Mon, 05/11/2015 - 10:02 | 6080694 NoDebt
NoDebt's picture

A vote for the status quo is always bullish.

Mon, 05/11/2015 - 10:15 | 6080723 Oh regional Indian
Oh regional Indian's picture

The fact that the GBUSD pair is called CABLE should really tell us everything we need to know about linkages and where the shit-show in both nations is headed.

In fact TPP is the ringfence that will make this more overt.

Both going down together. Look who they forced into office again. Who can believe that the good people of the UK voted Camera On in again! And how! UKIP 1...

What a pair...

Meanwhile, the grand finale of my dvd...Sequence 20: short and strong

https://www.youtube.com/watch?v=njftLIlO7co

Mon, 05/11/2015 - 10:22 | 6080741 RadioactiveRant
RadioactiveRant's picture

Voting for a party that’s top priorities are redrawing political boundaries to ensure a stronger victory next time, repealing the Human Rights Act (basically a new part of our constitution that among other things guarantees a fair trial), and passing further surveillance legislation tells you everything you need to know about morons inhabiting this country.

Mon, 05/11/2015 - 10:26 | 6080765 Oh regional Indian
Oh regional Indian's picture

That was a rather radioactive rant...

Mon, 05/11/2015 - 10:48 | 6080854 Marco
Marco's picture

Repealing the HRA is just preaching to the stupidest part of the base ... it does fuck all for UK sovereignty, the options are to leave or stay. There is no middle ground, repealing the HRA just means more UK human rights cases will be tried in European courts again.

Mon, 05/11/2015 - 10:53 | 6080870 RadioactiveRant
RadioactiveRant's picture

I'm not sure why bringing back fox hunting is a priority for a country running a £90bn/$135bn budget deficit. Is this whats holding us back?

Mon, 05/11/2015 - 10:51 | 6080857 Urban Roman
Urban Roman's picture

A party? What party? They both do that stuff.

Or you can vote Lib or Green and "throw your vote away" ...

[edit] Oh, you're talking about the Brits. I would definitely vote UKIP if there. They were ripped off, by the way -- third in vote count, but near last in parliament seats.

Mon, 05/11/2015 - 11:17 | 6080875 rejected
rejected's picture

GOOGLE "TTP" I went for four pages and the Trans Pacific Partnership never popped up.

I mean,,, do they own everybody?

 

EDIT: hahahaha...... Now had I typed TPP the results would be a bit different! (moron) Still the fact is no one seems aware of it.

Mon, 05/11/2015 - 10:18 | 6080732 Stoploss
Stoploss's picture

This should have no effect on exports, since the UK only exports misery...

Mon, 05/11/2015 - 10:26 | 6080770 Oh regional Indian
Oh regional Indian's picture

Zinggggerrrrrr..........

Do NOT follow this link or you will be banned from the site!