Theresa May calls for Snap Election

Having denied the possibility before Easter, yesterday we saw Theresa May announce a Snap Election ,due to take place on the 8th of June, catching everyone off guard. After an initial wobble the Sterling strengthened to a 10 week high against the USD and EUR, some predicting to even see another cent in the next couple of days, representing some great buying opportunity for investors. With attention in France still on the elections and support building for Le Pen, who has previously mentioned the possibility of their own referendum, this uncertainty is doing the Euro no favours. We have seen Sterling strengthen against the Euro on the back of Theresa May’s announcement. With the first round of events taking place this Sunday, we can possibly see EUR lose further ground on GBP and USD.

With no data out in the UK yesterday attentions were over State side for market releases. With the US reporting above forecast figures for new build permits, however only just, at 1.26m it did very little to stop the GBP breaking into 1.27 especially as the new Housing starts came in below forecast. Suggesting the US construction industry is not as healthy as it could be.

With no UK data out today again, attentions are in Europe with Consumer Price index and Trade Balance being revealed this morning, any negative reports could see the Euro weaken even further, however positive figures can quickly eat into the gains made today so don’t miss out. As well as Crude Oil Inventories figures being announced in the US. With the market currently presenting some great buying opportunities speak to the Currency Index team today.