UK election to go ahead on June 8th
Sterling reacts positively as polls put Conservatives ahead
US Unemployment Claims later this afternoon
Current Market Overview
Yesterday was once again dominated by the political scene, with the Election Bill surpassing the two thirds needed in the commons by a considerable margin of 522 - 13 votes. This officially means the election will go ahead on June 8th and campaigning can start. The bookmakers are seeing it as a Conservative landslide with labour in such disarray under Jeremy Corbyn, despite him putting on a brave face. Sterling has reacted positively as polls put the Conservatives ahead, as a potential landslide win is perceived to help the UK’s Brexit negotiation stance, mainly because Prime Minister, Theresa May, will be able to control the more Eurosceptic fringe of the Conservative party. The odds of a “softer” Brexit and an easier path through the Commons have increased. The Pound did strengthen throughout the day, although came off the highs before the close.
Last night, we also had the release of the Beige Book in the United States, which is monitored closely, as it summarises current economic conditions and is only released eight times a year. The key points were that the economy grew at a modest to moderate pace and wages are looking more positive, which is being viewed as an optimistic sign for another Federal Reserve rate hike this year.
Looking to today, as the political landscape unfolds, the main news will be Bank of England Governor, Mark Carney, speaking in Washington at around 10:30 GMT. Carney will be speaking at the Institute of International Finance event and this will be watched closely for any monetary and political speak, especially with what has gone on over the last few days. We also get US Unemployment Claims data at 13:30 GMT, which will be closely watched by the market.
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