Wednesday 12 May 2010

GBP and the election - part deux

OK - so I called the election wrong. Looks like there was a lot more anti-Tory feeling than I had reckoned with. Nevertheless some of those anti-Tories now find the party that they voted for in a coalition with those same people. Therefore my trading call to watch for a long GBP unwind was not a bad shout. Cable noticeably failed to rally on the establishment of the coalition government which makes me think that the market has already twigged that a) whoever is in charge will be a hostage to their terrible fiscal legacy and b) this coalition will be undermined by the left wing members of the Libdems who will look for the first opportunity to grab power away from the current leadership. I therefore remain very bearish on GBP.

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