Kantox currency update: pound surges after May announces early elections
The pound rallied on Tuesday after Theresa May called for an early election in June, which has boosted investors’ hopes for a more market-friendly approach to the Brexit negotiations with the EU.
The dollar remained weak and slid to three-week lows against a basket of the most traded currencies, weighed by market concerns about the growing geopolitical tensions and lacklustre construction and industrial activity figures in the U.S.
EUR/USD: three-week highs above 1.0700. The euro accelerated its rebound from 1.0600, breaking beyond the top of the last three-week trading range, reaching 1.0735 highs. At London market opening times, the EUR/USD is trading at 1.0720.
GBP/USD: surges to a fresh 6-month high at 1.2900. The pound advanced about 3% on Tuesday, after the May surprised the market announcing early elections in June, which sent the pair to1.2900, its highest levels since October. At London market opening times, the GBP/USD is trading at 1.2825.
USD/JPY: consolidating above 108.00. The dollar seems to have found a support level at 108.00 on its decline from 111.00 area last week, and the pair has remained trading within a narrow range below 109.00. At London market opening times, the USD/JPY is trading at 108.70.
In the Calendar Today
At 09:00 GMT The Eurozone Consumer Prices Index might attract some attention today. According to preliminary estimations, consumer prices have dropped beyond expectations, -from 2.0% to 1.5%-, due mostly to the decline in energy prices.
09:00 GMT EU: Consumer Prices Index (YoY) (Mar)
Prev: 2.0% Cons: 1.5%