GBP: the Political risk is already priced into the rates? – RBC CM

FXStreet – GBP currencies is the strongest currency among the G10, after the British Prime Minister, Theresa May’s elections on the 18. April announced. The gains correspond to, meanwhile, the same level as in the past, which arose after an unexpected victory for the Conservatives.

Important Quotes:

The international financial markets are likely to be a conservative majority of 130-150 Seats on the 08. June have priced in.

It is a good value in positioning for this risk of the primaries at a very low level of short-term implied volatility is up to date. The longer-term impact of the choice can be diverse in nature, and, in all probability, our forecasts continue to be driven by factors that will not change as a result of the election substantially.

** FXStreet News Editorial, FXStreet**

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