Sterling remains under pressure ahead of UK election results

Thursday, May 07, 2015

It is UK elections today and sterling has been under pressure against the US dollar, hovering around 1.5200 as investors remain cautious ahead of the results. Recent opinion polls and computer modelling suggest that neither Conservative Prime Minister David Cameron nor his Labour opponent Ed Miliband will come close to win 300 seats in the new House of Commons and secure a parliamentary majority. Results will be announced on Friday morning 8th May 2015.  

GBPUSD

GBPUSD Curncy (GBP-USD X-RATE)   2015-05-07 09-10-02

Crude oil prices rallied strongly yesterday and reached the highest level in 2015, as Brent front month futures consolidated around $68-$69 per barrel. The weekly EIA oil inventories report was bullish yesterday after showing an unexpected large decline of 3.88 million barrels in crude oil stocks for the week ending 1st May. This morning, crude oil prices slid slightly lower due to some profit taking in early trade ahead of key economic releases from the US this afternoon.

On the macroeconomic front, the main focus today will turn to the release of the US employment data including Challenger layoffs in April as well as weekly jobless claims. In addition, market participants will be keeping an eye on the US consumer credit and UK new car registrations for further direction across the global equity and commodity markets.

The euro climbed higher and extended gains above 1.1350 against the USD, verifying the recent strong upside momentum. However, the USD continues to remain under heavy pressure as the USD index has been consolidating around 94.0 against a basket of currencies this morning.

 

Events for today:

0235

JP

Apr

Markit Services PMI

0700

DE

Mar

Factory Orders

0900

UK

Apr

New Car Registrations

1230

US

Apr

Challenger Layoffs

1330

US

w/e

Jobless Claims

2000

US

Mar

Consumer Credit

All times UK Local Time

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