8 May 2015
GBP/USD: Huge spike towards 1.54 on UK exit polls
FXStreet (Bali) - GBP/USD has spiked higher following the results of the UK exit polls, in which conservative are projected to win 316 seats vs Labour 239, with SNP 58, LibDems 10, Plaid15 4, UKIP 2, Greens 2 and Others 19 .
Markets are pricing in a no referendum to exiting EC, which has translated into a higher GBPUSD, up over 1.5 cents to 1.54 from 1.5260. The results are a real shock and one has the impression that might be too high for the Tories, thus the run in the Cable a bit overdone.
As a side note, it is important to remember that exit polls have been very accurate in the last 2 elections despite this one appears to be slightly different, with voting being more tactical and UKIP and Greens playing a bigger role.
Markets are pricing in a no referendum to exiting EC, which has translated into a higher GBPUSD, up over 1.5 cents to 1.54 from 1.5260. The results are a real shock and one has the impression that might be too high for the Tories, thus the run in the Cable a bit overdone.
As a side note, it is important to remember that exit polls have been very accurate in the last 2 elections despite this one appears to be slightly different, with voting being more tactical and UKIP and Greens playing a bigger role.