DislikedCloggie I am just learning about Brit politics, I did follow along the election coverage on BBC thanks to BBaker's link... from what I can see from here on out it seems like it might be ho-hum reaction (or lack thereof) would you concur? it's more like now we're weighted down with the sheer volume of "difficult" (Cameron's word) work ahead of us and perhaps all other bullishness may already be priced in? I find it hard to imagine anyone is going to get all excited about buying the GBP now... would that make sense to you? I'm not asking for market...Ignored
Tomorrow we should slowly see the concessions that Cameron had to give to the Libdems. The importance for us traders is that Cameron keeps Osborne as Chancellor and does not give that away to the Libdems, having Clegg as deputy prime minister is a role with no substance really as he is not running a department.
The Tories always said that they would start cutting the deficit and the debt from the word go, as long as this has not been diluted by any deal with the libdems that should be good for cable and keep the Gilts down. The rotten apple again is of course Europe as they have just given Trichet a blank cheque book for buying up treasury debt there, keeping their prices artificially down. The market may well react negatively on Gilt prices here even though the Tories won, the normal trend for Cable has always been up after a Tory win. This of course is not an outright win and historically coalitions have never worked in the UK.
I am keeping a close eye on the news tomorrow to form a longer term outlook on Cable. As a precaution I personally closed my long term shorts in anticipation of a move up. Rather safe then sorry here.