8 May 2015
Positive sentiment for GBP from a possible Conservative win might ease – KBC
FXStreet (Barcelona) - The KBC Bank Research Team sees a probable turbulence in government formation as a likely negative factor for GBP ahead.
Key Quotes
“Overnight, sterling rebounded sharply as the first results of the parliamentary election showed that the Conservative Party was in the lead and will take the initiative to form a new government. At the moment of writing, it is not completely excluded that the conservatives can reach a majority, but this scenario is rather unlikely.”
“There is some logic in sterling gaining on the prospect of a continuation of the current policy. At the same time, a victory of the conservative party brings a vote on EU membership again on the radar. In this respect, we are bit surprised by the big gains in sterling.”
“In this context we maintain a neutral position on sterling. Positive sentiment might ease a bit in case of some turbulence during the government formation.”
“We expect the recent low in EUR/GBP (0.7118) to be a very though support.”
Key Quotes
“Overnight, sterling rebounded sharply as the first results of the parliamentary election showed that the Conservative Party was in the lead and will take the initiative to form a new government. At the moment of writing, it is not completely excluded that the conservatives can reach a majority, but this scenario is rather unlikely.”
“There is some logic in sterling gaining on the prospect of a continuation of the current policy. At the same time, a victory of the conservative party brings a vote on EU membership again on the radar. In this respect, we are bit surprised by the big gains in sterling.”
“In this context we maintain a neutral position on sterling. Positive sentiment might ease a bit in case of some turbulence during the government formation.”
“We expect the recent low in EUR/GBP (0.7118) to be a very though support.”