Countdown to UK 2015 election began. The market was
auspicious. FTSE 100 has range between 6,046 and 7,133 since August 2014. The
highest level in 7 years. Meanwhile, the GBPUSD has stood above 1.5000 for May
2015. Good economic news, but the outcome of UK election in hours might change
the current trend in asset price.
Let’s looking back at May 2010 for a while. FTSE 100
gradually declined from above 5,700.00 on April 15th to below 5,100.00
on May 6th with range between 5,800.00 and 4,780.00. While the pound
dropped more than 600 pips in a month until May 6th from above
1.5000 to 1.47. The pound down to 1.45 the day after the election, then it
slightly recover and briefly touched 1.50 on May 12th once the
coalition was formed. It slopped down again on May 20th to 1.4231, before
revived to 1.5600 on December 21st.
The past might not repeated again in regard of UK economic
condition differences between last election and today. However, careful will do
no harm. It is better to wait for 48 hours for seeing if the pattern will be
back again.