No election fears for GBP

- By FX Markets Staff
- @FXMarkets_
- 02 May 2005

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On April 13, we recommended long GBP exposure via short-dated options. This was predicated on the view that the outcome of May 5’s UK election is likely to be more clear cut than markets at the time discounted. Moreover, GBP has a historical tendency to rally during election campaigns, and in the wake of elections, particularly when the result is more decisive than expected. Subsequent news on voting intentions continues to support this view, and we maintain our short term bullish-GBP stance.

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