Intraday Market Thoughts

Archived IMT (2010.05.10)

by Ashraf Laidi
May 10, 2010 17:39

VARIOUS INTERPRETATIONS to Gordon Browns speech, in which he announced that his Labour Party is ready to discuss a coalition with LibDems. Brown announced he will step down to allow for these negotiations to go on, which is a negative for GBP as it paves the way for the possibility of establishing a labour/LibDem. While markets have proven their clear preference to see Conservatives in power (via GBP rebound following Camerons Friday speech), any signs of the alternative are showing the opposite impact on the currency. And so, GBP is not falling on the mere announcement of Browns stepping down but on the implications for a possible arrangement between Labour and LibDems. EURGBP eyes 0.8680, GBPUSD is dragged by a bearish oscillator crossover towards $1.4780.


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