Archived IMT (2010.04.16)

GBP is WORST performer of the day on fears of hung parliament after more than 50% of those polled found LDPs Klegg the winner in yesterdays political debate, followed by 29% for Conservatives Cameron and 21% for Labours Brown. Any improvement in LDPs election chances suggests marginalized majority for Tories or Labour, thus reducing chances of passing deficit-reduction policies. There are 2 more debates remaining before the election. Theoretically, the likelihood of a Conservatives/LDP coalition is smaller than that of a Labour/LDP coalition. Thus, with Tories still leading in the opinion polls and LDP gaining in the debates, the difficulty of forming a government would weigh on sterling. Part of the GBP rallies in recent days has been attributed to improved Tory polls. Cables 3-hr chart shows lower highs, suggesting trend line resistance at $1.5485. Could Nick Clegg become increasingly associated with a hung parliament?