GBP Tumbles Over May’s Statement – General Elections?
Skerdian Meta • 2 min read
The GBP has taken a nose dive of about 100 pips over the last hour. The GBP/USD pair is down to 1.2510 from above 1.26 while EUR/GBP has jumped about 60 pips.
There´s not much going on elsewhere in the market apart from the GBP pairs, so this is something exclusively connected to the Quid.
Up and down we go on election rumours
A short while ago, an important statement was put out by Downing Street. We know that these types of statements are only put out when there is something important to announce.
Speculations have run the gamut as to what it could be about. Though Theresa May seemed to have ruled out a snap election earlier, the statement just confirmed that the elections will be taking place. May is out right now confirming the elections, which have been scheduled for June 8th.
The elections seem appropriate seeing as Theresa May was only given her position in order to trigger Article 50. Now that this has been accomplished, it is right for her to allow Brits to vote on who receives her position.
She appears unsure of how to lead the UK government into smooth EU/UK negotionations. Her cabinet seems unsure as to what path Brexit should take and perhaps it is time to give the reins over to someone more confident.
The Pound is back up now, and we know these elections will be all about Brexit. I don´t think that anything substantial will change. However, from a traders' perspective, this is a good trading opportunity, although the market could receive the election results either way.
We can't know if the elections will affect the GBP positively or negatively. We´ll conduct a thorough fundamental analysis and see which side to take.