GBP review

A surprisingly decisive and expeditious election victory for British Prime Minister David Cameron helped take away a layer of uncertainty and weakness for the pound which responded by soaring more than 1 percent to 10-week highs above $1.55. 

Defying opinion polls and market expectations, David Cameron's Conservative Party won enough seats to form a majority government on his own in the 650-seat parliament, without the help of a coalition partner. The speedy outcome removed a dark cloud that has long hovered above the pound whose short-run prospects have now turned sunnier. 

Still, political uncertainty hasn't entirely gone away since Mr. Cameron is expected to hold a referendum over the coming years on whether Britain should remain a member of the EU. 

On the data front, Britain's trade deficit narrowed to £10.1 billion in March which was bigger than forecasts of £9.8 billion.