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By Associated FX Analysis Team

Kantox currency update: pound surges after May announces early elections

Published April 19, 2017

british pound

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%



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