The UK General Election 2019. All you need to know.The UK General Election 2019. All you need to know.
Plus, a great betting opportunity guide as a bonus.
As we all know, The UK General Election is to take place on 15th of October, deciding the fate of the country not only for the next 5 years, but for the decades to come!
The need for the election was obvious, given the Brexit impasse in the parliament, that was unable to deliver Brexit for more than 3 years, sabotaging the will of the people. Having a Remainer prime minister without the real majority did not help the cause either.
Now, with new Brexiteer prime minister Boris Johnson at the helm, and the ERG-the European Research Group, the eurosceptic parliamentary fraction within the Conservative party, the country has got a chance to see some real action. Yet, we saw the parliament going to great lengths to sabotage the new government, ranging from using the powers of a scandalously biased speaker- John Bercow, to prevent voting from happening to using the newly created supreme court, who’s politically motivated decision undermined the government and the Brexit proceedings.
Getting to the election was a massive struggle in itself with the opposition blocking the motion to call for an election, which Implies the oppositions grim outlook on its electoral prospects.
Now, with less than 8 days to go, let's have a look at the election scene the way I see it.
So, the Tories are leading in the polls, entering this election as a ruling party, with some recent success in the Brexit talks, a charismatic energetic leader, and a clear Brexit position, which is now declared to be the hard Brexit, with a proper trade deal afterwards. The, who wins this election will decide not only the manner of leaving the EU but also the future relationship with the Block.
Brexit seems to be the key focus issue of the Tories in this election, and they are trying to steer all the debate into this channel. There is a grain of salt in there for Boris, however, as he promised to take the country out of the EU by 31st of October, and, as we can see, he did not. Not his fault though, but, a good aim for criticism for the competitors.
There are some spending promises from Tories too, for NHS In particular, which seems to have become the sacred cow of UK politics.
Boris Jonson himself is both an asset and a liability in the increasingly «presidential» in style UK elections. He is vocal and charismatic, bold and aggressive. Compared by many to Donald Trump in both the political style and in the way he looks. Some might remember him as a liberal mayor of London, for others, especially the young swing voters, his Brexit stance and his style might be a massive put off.
On the bright side, one of the highlights of the last debate was Boris’s clear position on Scottish independence. He said that the Union is more important than Brexit and than anything else, which is appealing to the part of the electorate that values the Union, which, let's be honest, is a majority, even in Scotland. Seats before current parliament dissolution: 298
Labor, in contrast, is entering the election mired In the antisemitism scandal, with Jeremy Corbyn as a leader and an unclear Brexit position. Corbyn, being a geriatric incoherent Marxist, who miraculously managed to become the Labor leader is a massive scarecrow for swing voters of all stripes.
The last election momentum surge, that deprived the Conservatives of their majority was largely due to the voter’s delusion of Labor being a Ramain party. That advantage is gone, with labor spending all 3 years of Brexit struggle sitting on a fence, calling it “constructive ambiguity” and now, becoming a second referendum party. Labor wants to renegotiate Boris Jonson's deal and then put the result to another public vote, with the Remain as a second option.
Unsurprisingly, Labor talks mainly about the “starved” public services, the river of cash for the NHS, the free broadband for everyone, in addition to their plans to nationalize Water, Rail, and Electricity.
More free stuff for everyone paid for by the money form the magic money tree, which is how Labor sees the government borrowing and taxation. Should labor get in power, having half their plan done is certain to put the country on the brink of insolvency. They call that ending the austerity, which turns out to be a maximum affordable level of spending when put under scrutiny. The fact that the public services used to get more funding in the pre-crisis Labor era simply means that the latter tend to spend beyond the means.
Another cornerstone of labor criticism of the Conservative opponents is the trade deal with the US which might be struck, should Brexit go as planned by the current government. Labor screams about the dreaded chlorinated chicken, lower labor protection and the sacred cow-the NHS being up for sale for the US health providers. For that, it is only fair to repeat Jonson’s joke, that the only chlorinated chicken here is Jeremy Corbyn himself. Seats before current parliament dissolution: 243
Lib Dems gamble on being a Remain party, with the policy to cancel Brexit seems to have backfired, with such pandering being perceived as unconstitutional and undemocratic by most of the people. Also, fake grotesque confidence exhibited by its newly elected leader, styling herself to the next Prime Minister which is almost impossible, has turned voters away.
The third mistake was remaining fiscally conservative, as it was expected for the Tories to go on a spending spree, so the Lib Dems wanted to appeal to the Tory voters, who are disappointed with the so-called current conservative's swing to the right, but who can’t vote labor. Having a female leader- a fresh face that is not mired in the “dirt” of the coalition years might help, yet, I don’t see the Lib Dems as a formidable contender. Seats before current parliament dissolution: 20
SNP- the Scottish independence party is interesting to watch with the independence talk being reinvigorated by Brexit, with not only the majority of Scotts voting Remain in the Brexit referendum, but also, previously, many voted to stay in the UK during the Scottish independence referendum, because of the UK’s membership in the EU. Now, with the UK set to leave the EU, SNP is making the case for another independence referendum, arguing that the post-Brexit UK would be such a different country, that another referendum is needed. Seats before current parliament dissolution: 35
The other parties are most likely to keep their insignificant number of seats and are largely irrelevant for this analysis. Independent MP’s: 24, DUP:10, Others:22. The total number of seats in the house of commons:650.
There is another interesting element in this election: the Brexit Party. A newly formed party starring in the latest EU parliamentary elections, which theoretically were not supposed to take place in the UK due to Brexit, humiliating Britain with its inability to get the job done.
The party is Nigel Farage’s child, who is arguably the most notorious and well-spoken Brexiteer, who advocated for the UK leaving the EU for the last 20 years.
The party was meant to be a boogieman for the Tories, pushing the latter further south on the scale of the Brexit hardness, threatening to steal the leave voters from the tories around the country.
The Brexit party's current position exposes the inadequacies of the UK’s current electoral system. The first-past-the-post (FPTP) system, where single MPs are picked per constituency on a non-proportional basis, means that smaller parties have virtually no chance of getting any representation in the parliament, ensuring the two main party’s lead position.
UKIP- the UK independence party, a former Nigel Farage’s project is a perfect example of the inflexibility of the FPTP system, with the UKIP polling in 7-12 percent at times, yet failing to get a single MP in the commons for years.
Voters might like your agenda, yet people vote for the party that has got chances of being in power at the end of the day. In other words, it is theoretically possible for the party to get 30% of the popular vote, but with it being distributed evenly among the constituencies, the party gets ZERO representatives in the parliament.
The recent study shows that nearly 14 million voters are living in constituencies that have been held by the same political party since at least the second world war, with some not having changed hands for more than a hundred years.
The Brexit party’s power, while having no chance of getting a single MP, is in that it could steal some voters from the Conservatives in each constituency, delivering victory to the Labor.
That is how it was supposed to work. This position might have shifted the Conservatives position, so the plan worked. Now, however, with the Tories being the only ones, who can deliver any Brexit at all, Nigel Farage said they are not targeting Conservative seats.
The same complication haunts the Lib Dems, with the Conservatives saying: vote Lib Dem-get Corbyn in power. And that is a reasonable claim.
It is clear, that this election is going to be about who you hate the least, not the who you like the most.
With no one having made a single major gaff yet, the campaigns have been quite dry and boring, the debates were toothless and uneventful. Taking this into account, with just a week left to go, the polls and the common sense suggest a high chance of the Conservative majority, with the bookmakers supporting this view with 2/5 odds on this scenario vs 6/1 on the Labor Minority being a second likeliest one.
Labor Minority, which Implies that Labor takes more seats than the Conservatives, yet less than needed for the majority, is wildly unlikely, due to the fact that Lib Dems are mostly targeting Labor seats. SNP might gain in Scotland, taking seats from both labor and Conservatives. So Torie seats are largely the only ones, that Labor can be targeting , which will prove to be a hard thing to do, given the current poor state of the labor party.
Tories minority government seems to be the second likeliest option to me with the odds around 10/1 making it an excellent betting opportunity. Here is why. If Tories don’t get the majority, labor might indeed try to form a coalition government by promising SNP a second independence referendum and offering Lib Dems a seat at the table and a second Brexit referendum with even softer Brexit option on the table. Labor will need both SNP and Lib Dems to form a coalition, which makes it an unlikely option, given the limited time given to form the government and the difficulty and instability of the Trilateral relationships. The prospects of the coalition are further undermined by the Lib Dem's bad memories from the coalition with Tories. Will they risk another one? Who knows. The unlikelihood of the coalition government is reflected in the 22/1 odds, making it a formidable betting option too, because, while being less likely than the Conservative Majority/Minority government it is still possible given how volatile politics has become.
Common sense suggests that the Tories majority is the best scenario for the UK now, as this option provides certainty with regards to Brexit, makes the US trade deal possible, and keeps the Union intact by denying the SNP their second referendum, which is an insane endeavor, to begin with. Not least because they had one already. And such votes are supposed to be a once in a generation thing at best. You can't just throw in an independence vote now and then for a laugh. Also, we can trust the Conservatives to be fiscally responsible, which will help the country prepare for both the possible global crisis and the headwinds of the first post-Brexit years.
On a side note, Brexit and all the other issues that the UK faced in the last 5 years exposed an outdated political system unfit for the 21st century. The need for the electoral reform, giving more power to smaller parties while also allowing for the new ideas to come onto the political scene, forcing major parties to adopt, is clear as day.
There is a need for a written constitution too, now that the UK has got a supreme court, which was able to overturn the decisions of the government recently while being unelected and unlimited in the scope and direction of its decisions by a written constitution. Finally, a radical decentralization is crucial to keep the Union, or one, and also to allow for the county to be run more efficiently, whereas now almost all the power rests in London.
The end.
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Brexit
GBPUSD - Daily chartGBPUSD is fast approaching a very strong resistance level at 1.317, which is where I want to look to enter short on this pair.
This could also be the 3rd contact made on a forming trendline from the high in 2014.
My first target is 1.28 and I would wait to see a break below the ascending dotted line to confirm a further drop.
Fundamentals are playing a large role in all GBP pairs recently. So please be cautious and only take trades like this if you have already surpassed your weekly/monthly target gains.
GBPUSD 4H short Idea Short Selling Idea
from : 1.2929 - 1.2905
TP1 : 1.2710
TP2 : 1.2520
Stop Loss : 1.3040
This is not an investment recommendation or any call to buy or sell
It is just an analysis based on a study of the history of price action
Behavior , that may not be a necessarily reason for the success of
the structure or repetition. So please make your decision based on your vision .
To protect capital and manage your deals and trading successfully
the maximum loss in each transaction for the same currency or
commodity in the same direction should not exceed ( 2% ) of the capital .
Good luck >>
EURAUD and GBPAUD primed for Aussie Q3 Data.I have spoken about the EURAUD pair last week, but the trade was triggered on the break and close below the neckline. Market structure showing us a confirmed lower high.
We are now back retesting the breakout zone which is normal and expected. One can enter here with a better risk vs reward, or the conservative approach would be to await a new confirmed lower high which would mean a break and close below 1.6150 zone.
GBPAUD is one that has frustrated many, but the trade was NOT valid until we got the break below the flip zone/neckline. Our patience may finally be paying off.
It looked like we were going to break out, but we reversed. This is another bearish sign. However, the zone of 1.8910 is still the one we are watching. This has not changed. You can see we did retest it but did not break it.
It does seem like we are going to make a lower high here in a head and shoulders type pattern. Again, the lower high is only confirmed with a break below this neckline zone!
We do have Q3 Aussie data today. It is a high risk event. The market expects economic growth of 0.5%. Be careful of this event. It will occur before a 4 hour evening close so this data could definitely be a catalyst for the Aussie to continue, or break out for the GBPAUD.
GBP/NZD buyers pushing price upHi traders.
Here we have an interesting setup in GBP/NZD.
The pair has completed a pullback to a daily support zone and is forming a indecisive doji candlestick in today's trade.
The level aligns with the 38.2% Fib level, and the daily RSI shows a hidden bullish divergence.
Zooming-in to the 4-hour chart, we get a nice bullish wedge pattern with the price retracing at the lower wedge support.
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GU: Daily consolidation remains useless for opportunities Out of all of the pairs this is fundamentally the most unpredictable. I think that playing around with the pound this week is risky and manipulation could occur and be obvious. Always remember there's no limit to how many fake outs can happen with a setup so make sure you wait until it has confirmed the true direction of price action. We'll be favoring a weaker pound at current levels.
US records, Trump irritates Sino & Johnson is ready to celebrateMost Americans, as well as financial markets, received the day off from work on Thursday, therefore, we can focus on other financial markets.
In today's review, we will focus on the oil market. Recall that next week the OPEC meeting should be held, which could potentially change the existing balance of forces in the oil market. But we will talk about this meeting later.
Now let's focus on the current state of affairs. Oil growth last week was highly dependent on optimistic news about the progress in negotiations between the US and China. Accordingly, traders worked out a possible increase in demand in the oil market.
But, as we already noted in the previous reviews, the markets are already tired of promises and waiting for results. Accordingly, oil growth stopped.
The participants in the oil market can be understood, especially considering that Trump has nevertheless signed a law to support protesters in Hong Kong. Potentially, this could cause a new round of escalation in relations between the USA and China and another breakdown of the negotiation process between the countries.
At the same time, statistics from the US come out bearish. First of all, it is about the USA reaching a new record in oil production: 12.9 million barrels per day. The result was an increase in US oil reserves, which in aggregate puts pressure on oil quotes and not only does not allow the asset to grow but also pulls it down.
Our position in oil is as follows: we look for points for selling the asset on the intraday basis and sell oil in the medium term (current prices are quite favourable for this).
But lets back to other news and markets. According to a YouGov poll, conservatives will win and get the vast majority in the December 12 elections in the UK. This means that Johnson will have every opportunity to ratify his Brexit deal. Thus, the probability of exit without a deal has become even more insignificant. For the pound, this is undoubtedly good news. Recall that its growth potential is far from exhausted. We are talking about 500-1000 points of the possible growth of GBPUSD. So we continue to recommend buying a pair.
EU: Daily neutral setupNo trade for the Euro yet this week (yet), as we continue to deal with illiquid markets that are not allowing any opportunities to be taken advantage of yet this week so far. I'm ideally bullish for the Euro based on a technical perspective, but the fundamentals are why I am neutral until we get a decifson of price action for the Euro this week. Hopefully it will be today or tomorrow. Weekly downside target is 1.09 if 1.1 is broken. Weekly upside target is open as I think there is a lot of upside to the Euro if 1.1 is rejected. I expected an entry soon.
PREDICTING THE MARKET BEFORE IT HAPPENSAs we can see here, there is an enticing level of so called resistance on the daily and the 4 hourly chart. Price has moved away from this area and novice traders have gone short. It is very easy to predict where stop losses will be. Notice the decreasing volume as price shorts away from the "resistance". If the collective amount of people doing the same thing moved the market, the move and volume would be much more drastic. Only big institutions and news moves markets. I expect people who shorted to soon be taken out and a manipulation occur, however with all the Brexit news around the GBP I'm being cautious.
China makes concessions, Johnson's manifesto & Societe forecastsOn Monday markets were waiting for the successful completion of the first phase of trade negotiations between the US and China. This time, a positive signal was China's willingness to increase the punishment for violating intellectual property rights. China's regular violations of these rights that particularly irritated the United States and largely hindered negotiation progress.
Information about the victory of the Democrats in Hong Kong also helped to relieve tension in the financial markets, as there is hope that this conflict can be resolved peacefully.
Against the backdrop of such news, the decline in safe-haven assets seemed quite understandable on Monday. However, while we do not see any reason for global repositioning, we will use this decline in gold and the Japanese yen as an opportunity to buy safe-haven assets cheaper. Moreover, there is a “Trump factor”, which literally can turn the situation upside down. For example, sign the bill on human rights and democracy in Hong Kong or blame China for intransigence, etc.
In addition, the global crisis is still potential. For example, analysts at Societe Generale expect a recession in the spring of next year. According to experts of the bank, the next recession in the United States will be triggered by a sharp reduction in company profits, which, in turn, will be caused by the rapid acceleration of labour costs.
Yesterday was pretty successful for the British pound. The fact is that on Sunday, Boris Johnson has launched his party’s manifesto, in which he promised before December 25 to submit to the parliament an agreement on Brexit, agreed in October with the EU. According to surveys, the Conservative Party is now supported by 42% of voters, and the Labor Party - 29%. That is, with such a scenario, there is no risk of Britain leaving the EU without a deal, but the growth potential of the pound is far huge. So we continue to give preference to purchases of the pound, but until the announcement of the election results, we do not expect strong directional movements in the pound and recommend adhering to oscillatory trading, that is, buy the pound from hourly oversold zones and sell from hourly overbought zones.
As for our other recommendations, today we will sell a pair of USDJPY, buy EURUSD, and also sell oil.
ORBEX: Brexit Hopes Up on Tory Lead, Trade News Fail to Lift FX!In today’s market insights video recording I talk about the pound rally and how the cable is likely to perform now that polls show a comfortable Tory lead!
I also explain why #Aussie isn’t moving higher while risk-on mood increases high-beta bets amid the latest #tradewar headlines that a deal is indeed possible before Christmas! What are markets waiting for?
Watch what Elliott waves have to say!
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
BT - Dialling upBuy BT Group (BT.A.L)
BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as various communications services ranging from phone and broadband to managed networked information technology (IT) solutions and cyber security protection.
Market Cap: £18.96Billion
BT has broken out of a channel pattern on the daily chart. The breakout move has retraced 50% of the impulsive move higher and retested the broken channel. The shares appear to be stabilising around 185p, while the Conservatives remain in the lead in the opinion polls then the shares could continue higher in relief of avoiding the threat of part nationalisation from a Labour Government.
Stop: 181.6p
Target 1: 212p
Target 2: 230p
Target 3: 265p
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GBPAUD Set Up for a Massive DeclineGBPAUD is making a series of (i)-(ii), i - ii, wave pattern which usually leads to subsequent decline.
On the higher timeframe, price is sitting at a key resistance level that lined up with 50% Fibonacci retracement of the weekly decline.
Price has the potential to sell-off from or near the current level and should not breach at least the major invalidation level indicated on the chart to remain valid.
What's your thought about GBPAUD? Kindly let me know in the comment.
Thanks for reading!
Veejahbee.
eurusd potential extention wave The eurusd has been on a consistent downtrend over the past couple of years and it looks like that is likely to continue.
However, the impulse buying could see apossible extension to the upside.
The lowest possible price in my opinion, if you are looking at minimal risk (for buys) is 1.0990 (stop loss 10 pips)