UK: Back to the polls - TDS

Analysts at TDS note that the Prime Minister Theresa May intends to hold a UK general election on 8 June 2017 as she will introduce a motion in parliament today that requires (and is likely to get) a two-thirds majority support.

Key Quotes

“Holding an election right now has many advantages, including giving her (an elected PM) the legitimacy to negotiate the UK’s Brexit deal with the full democratic backing of the voters. Her party’s support is also at record highs relative to the opposition Labour party.”

“The call for a snap election in Britain has seen cable rally to fresh highs. Given yesterday’s breaks through some key technical levels, GBP will be one to watch over the coming days and weeks, with the currency likely to start trading more closely with election polls. We like EURGBP lower and EURAUD and EURNZD higher.”