FX Chaos – Cable Cracks Lower On Election/Confidence; Chinese Yuan Spikes To 3-Month Highs

A kneejerk lower in Cable overnight (on Tory poll numbers dropping and weak confidence) started the fun in FX markets but (aside from Bitcoin), but Yuan is the big mover once more with a big figure spike to 6.85 – strongest since early Feb, extending the gains post-FOMC Minutes.

A new poll from Reuters shows the Tory lead fading fast in the UK election…

In a sign that the election could be more closely contested than has previously been thought, YouGov said on Thursday May’s party was on 43 percent, down 1 percentage point compared to a week ago, while Labour was up 3 points on 38 percent. The previous YouGov poll had given May a lead of nine points.

Then YouGov/CEBR consumer confidence tumbled to the weakest since weeks after Brexit vote…

Consumers the least confident about their current financial situation since December 2014
Expectations about their finances over the next 12 months also fell
Perceptions of job security were at a four-year low

“It looks like this may be the point where the slowing GDP figures start to translate to people’s everyday lives,” Stephen Harmston, Head of YouGov Reports, said. “The figures indicate that they are starting to experience a downturn.”

And that prompted notable weakness in Cable…