Currency of the week: GBP/USD: the short squeeze finally came, but the road is bumpy

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Summary

May's smart political move is an opportunity to get rid of opponents from without and mostly from within, at a perfect timing. She will not be wasting Brexit negotiation time and markets are hopeful for a soft-Brexit pivot after June 8th. BOE Governor Mark Carney may also release a sigh of relief as the stronger pound helps him sit on his hands: there is no need to raise rates. However, doubts about the economy and the impact of Brexit could still hurt.

Watch the full webinar: Election fever - GBP jumps, EUR awaits France