Sunday, May 02, 2010
Early bet on sterling collapse
The Guardian: UK faces run on pound within hours of polling as futures exchange opens early
Britain could be battered by speculators on the international money markets within hours of the election result as the futures market in bonds and sterling has agreed to open for the first time at 1am on Friday.
Usually bond dealers would have to wait until the markets opened on the morning after an election to begin trading but the futures market in gilts – UK government bonds – is opening only three hours after the polls close and seven hours earlier than usual.
Posted by devo @ 09:15 PM (2127 views) Add Comment
6 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. alan said...
Gold is $1180.
I reckon we will hit a record price in the next 2 weeks. Anyone for Krugers?
2. Notyethomeless said...
Remember, it could go the other way. Surprise to the up-side on Sterling could be on the cards.
3. vacuouspolitician said...
This should cheer up the city slickers on this website. They can go and peddle their misery earlier. Jar Spoon Spoon Jar.
4. drewster said...
Bookmakers' odds* show that the two most likely outcomes are either a hung parliament or an outright Conservative victory. In the event of a hung parliament, we have two further choices: a Lib-Con coalition or a minority Conservative government. Let's examine the consequences for Sterling under each scenario:
Conservative victory: Under this scenario, the government has the ability to make tough decisions and stick to its guns. They can cut spending easily and reduce the budget deficit.
Hung parliament, Lib-Con coalition: A coalition would take a few days, maybe a couple of weeks, to bring together. However once formed, they should also be able to take tough decisions. They might even find it easier to make big cuts since neither party can be blamed directly.
Hung parliament, Conservative minority government: This looks like the worst of the three options. Trying to pass a budget of cuts without the support of other parties will be difficult; other parties don't want to be seen to support cuts. Unfortunately this appears to be Cameron's preferred choice, in the event of no overall majority.
So in conclusion, what happens on May 7th may not matter; it's what happens afterwards with the budget that is far more important.
[*Source: OddsChecker.com]
5. This comment has been removed as it was found to be in breach of our Blog Policies.
6. mrflibble said...
So the Casino is open early on Friday then, excellent...