4 May 2015
Political uncertainty to weigh on Sterling - ANZ
FXStreet (Bali) - The ANZ Research summarizes last Friday's action in the financial markets, also adding that political uncertainty is likely to continue to weigh on sterling.
Key Quotes
"US Treasuries remained under pressure, despite the weaker-than-expected manufacturing report, with 10-year yields up 8bps. It was a quiet session for euro area sovereign bond markets, however, with most markets out for the May Day Holiday."
"In FX markets, sterling declined sharply against the USD following an unexpected fall in the April manufacturing PMI report. More broadly, political uncertainty is likely to continue to weigh on sterling. Current opinion polls suggest that neither of the major parties will win enough seats to form an overall majority, raising the prospect that protracted negotiations will be required to form a viable government."
"US equities gained in early trade, with health care stocks outperforming. Oil prices retreated from a four-month high, following reports of a further increase in Iraq oil exports in April. Gold prices also weakened on the firmer USD."
Key Quotes
"US Treasuries remained under pressure, despite the weaker-than-expected manufacturing report, with 10-year yields up 8bps. It was a quiet session for euro area sovereign bond markets, however, with most markets out for the May Day Holiday."
"In FX markets, sterling declined sharply against the USD following an unexpected fall in the April manufacturing PMI report. More broadly, political uncertainty is likely to continue to weigh on sterling. Current opinion polls suggest that neither of the major parties will win enough seats to form an overall majority, raising the prospect that protracted negotiations will be required to form a viable government."
"US equities gained in early trade, with health care stocks outperforming. Oil prices retreated from a four-month high, following reports of a further increase in Iraq oil exports in April. Gold prices also weakened on the firmer USD."