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Traders cautious with Sterling amid election day

Thursday, May 07 2015
Sterling was pushed lower this morning as traders are being cuatious with placing any larger bids ahead of results of elections held today and which were widely expected to result in a hung parliament and an unstable coalition government. The two leading parties have a five-point spread between them a day ahead of the election, and thus a hung Parliament is certain. 
 
The forex traders are responding as they did to the 2010 dead heat – the GBP/USD is trading around 1.50 and implied volatility is at a five-year high at around 18.  The UK pound is up 2.5% against the dollar since the 2010 UK elections. If Labour is left to form the coalition government, more political uncertainty and volatility is likely. 
 
Sterling is currently being traded few points above  1.5210 level. Pair is likely to find support around 1.51 handle and resistance above 1.5280 area. Later today, in the US session, Unemployment Claims figures are scheduled for a release.
 
More in this category: « Euro higher in an uneventful European part of the session Unemployment Claims increased to 265,000 »

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