9 Days to Go!

With the General election only 9 days away, tensions are beginning to get high as the ten polling companies give indications on the current voting intentions ahead of the 12th Dec. Now with nine out of the ten companies suggesting Labour has dramatically increased their vote share by a minimum of 5%, it seems Labour is drawing closer by the day to the suggested vote share leading conservatives. This is now giving the markets an additional boost of uncertainty as there is no clear cut indication to the overall outcome on the 12th.

As Sterling Euro begins to start its third consecutive month in its two-cent range-bound market, it is clear the market is waiting for the election stimulus in order to choose its direction and so a lot of volatility is to be expected post outcome.

To put this in perspective just a one-cent jump in the GBP/EUR rate on a £100k transfer could cost you an additional €1000.

With any outcome certainty between labour and conservative nearly all removed is it worth the risk when the market is already in the 6/7 month high range? Please get in touch if you have any pending fx requirements to discuss with your account manager how we can limit your risk/ take advantage of the up and coming election.

Also please note the Eco stats being released the remainder of the week below.

Wednesday

00:00 – EUR -Eurogroup Meeting
00:30 – AUD – Gross Domestic Product (QoQ) (Q3)
15:00 -USD – ISM Non-Manufacturing PMI (Nov)
15:00 -CAD – BoC Interest Rate Decision

Thursday

10:00 – EUR -Gross Domestic Product s.a. (QoQ) (Q3
13:30 – USD – Trade Balance (Oct)
13:30 -USD -Initial Jobless Claims (Nov 29)
15:00 – USD – Factory Orders (MoM) (Oct)

Friday

13:30 – USD – Nonfarm Payrolls (Nov)
13:30 -USD – Average Hourly Earnings (YoY) (Nov)
13:30 – CAD – Unemployment Rate (Nov)
15:00 -USD -Michigan Consumer Sentiment Index (Dec) Prel