The official exit poll in the UK Election has indicated that the risk of a hung parliament is now high, as a result the GBP has fallen sharply across the board, down more than 1.5% already in overnight trade. It has since rebounded modestly from session lows, but the risk is high for the sell off to continue as Asia opens for trading.
If the Conservative Party fail to achieve a majority the GBP could see further widespread falls on rising political uncertainty in the UK, possibly to as low as 1.24 against the dollar.
The EUR/USD is under pressure as well today after Draghi tempered the markets expectations for tapering anytime soon and said that normalization has not been talked about at the meeting yet. The market is still keen to buy dips and is starting to doubt the sincerity of the ECB as they have been slow to respond to the pick up in the Eurozone Ecnomic activity.
FBI Comey came and went without a huge shock or smoking gun and we have seen the USD/JPY roughly unchanged at the Y110. He did strike a defiant tone suggesting trump and his team lied but we dont have any proof just a he said she said.
