7 May 2015
GBP vulnerable into UK coalition negotiations process – BNPP
FXStreet (Barcelona) - The FX Strategy Team at BNP Paribas, believe that pound remains vulnerable into the coalition negotiations process, and remain long on EUR/GBP.
Key Quotes
“Voting in the UK general election will end Thursday at 10pm local time (21 GMT), with the first exit polls released then and the majority of official results available by 5 GMT the next morning. While the exit polls will likely provide a good sense of the distribution of seats in the new parliament and indicate which party will get first shot at forming a coalition, there will remain considerable uncertainty over how successful those efforts will be.”
“We think the GBP remains vulnerable through the coalition negotiations process and would not rush to fade EURGBP gains. We remain exposed to EURGBP upside via an 0.72 call expiring in June.”
Key Quotes
“Voting in the UK general election will end Thursday at 10pm local time (21 GMT), with the first exit polls released then and the majority of official results available by 5 GMT the next morning. While the exit polls will likely provide a good sense of the distribution of seats in the new parliament and indicate which party will get first shot at forming a coalition, there will remain considerable uncertainty over how successful those efforts will be.”
“We think the GBP remains vulnerable through the coalition negotiations process and would not rush to fade EURGBP gains. We remain exposed to EURGBP upside via an 0.72 call expiring in June.”