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Hardy: Sterling hit whatever the result of UK election

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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.