Tuesday, April 25, 2017
Today’s Spotlight Market
UK Prime Minister Theresa May shocked the monetary markets when she introduced a snap basic election upon Parliament’s return from the Easter Recess final week. While the Fixed Term Parliament Act was designed to stop the early calling of elections, a 2/three majority vote in Parliament can supersede the Act, and Parliament voted overwhelmingly to approve a UK common election on June eight, 2017.
This utterly sudden transfer shocked the monetary markets because the British Pound rallied and the FTSE 100 bought off. Looking on the polls now, Theresa May’s Conservative Party has a giant lead, and lots of political observers anticipate her to extend her majority in Parliament. This would give the Prime Minister extra flexibility through the Brexit negotiations, as she might afford to have some Conservative defections throughout a number of the troublesome Brexit votes. However, there are a couple of caveats. This would be the 4th consecutive yr with main UK elections. 2014 noticed the Scottish referendum, the overall election of 2015, and the 2016 EU referendum. Also, observers of UK politics will all the time level out the early common election of 1974, when Conservative UK Prime Minister Ted Heath referred to as an early common election and misplaced his majority to the opposition Labour Party.
The large rally within the Pound induced the Pound to interrupt by means of the 200-day SMA, altering a delicate bullish sample into a stronger one. The slope of the fast paced 20-day SMA is now on a sharp upturn as nicely. Resistance can now be discovered across the 1.2900 degree whereas help is close to the early March 1.2150 ranges. 14-day RSI at 66.49 is in mildly bullish territory.
Dale Jennings, Commodity Analyst
SOURCE: FuturesBlogs – Read whole story here.