SaxoTV

Hardy: Sterling hit whatever the result of UK election

554 views
April 28, 2015 for, forex, forex market, forex markets, forex trading, fx, fx audusd, fx award, fx changes, fx chart, fx crosses, fx dealing, fx dollar swiss, fx eurgbp, fx eurjpy, fx europe, fx eurusd, fx exchange, fx forex, fx gbpusd, fx interbank markets, fx investing, fx john hardy, fx levels, fx market, fx markets, fx markets', fx marlets, fx news, fx options, fx outlook, fx pairs, fx pound, fx rates, fx regulation, fx saxo bank, fx spot, fx sterling dollar, fx strategy, fx trade, fx trade exports, fx trade idea, fx traders, fx tradersfx, fx trades, fx trading, fx tradinging, fx trends, fx usd, fx usdcad, fx usdchf, fx usdjpy, fx volatility, fx volatitily, fx vols, fx yen, fxallocationmodel, fxforex, fxfx, fxfxfotrex, fxfxfx, fxmarkets, fxmonthly, fxoptions, fxoptions', fxspot, fxtrade, gb, gbp, gbp eur, gbp falling, gbp trading, gbp trading 2014, gbp trading 2015, gbp usd, gbp weakening, gbpchf, gbpchf november 2008, gbpeur, gbpeur 2014, gbpjpy, gbpusd, gbpusd 1.7, gbpusd 1.70, gbpusd 2014, gbpusd five year high, gbpusd labour day, gbpusd oct 2008 high, gbpusd record high, gbpusd trade idea, saxo, saxo tv, saxo tv saxo bank, ster, sterilisation, sterilization, sterilng, sterling, sterling appreciation, sterling dollar, sterling euro, sterling exchange rate, sterling forex, sterling investment, sterling losses, sterling outperformed, sterling puts, sterling rate, sterling rise, sterling risk, sterling strength, sterling strong, sterling trading, sterling trading 2014, sterling trading 2015, sterling weakness, sterling yen, sterlingyen, sterlisation, sterlng, tradingfloor.com
Sterling is strong with GBPUSD rallying from below 1.4600 at the beginning of April to above 1.5200 by the end of the month. Saxo's John Hardy says the market believes it's priced in any election outcome.

But he isn't convinced that's the case and thinks GBPUSD will move lower whatever the result. He also points to the UK current account deficit which is running at between 5-6%. The market is ignoring this, he says, at its peril.

With both the FOMC meeting and Q1 GDP figures out on Wednesday, John also says traders must watch the US dollar. He says the market isn't ready for renewed dollar strength but that the "dollar bull story is going to come roaring back" which will see GBPUSD fall significantly.