GBP Jumps – Markets Mid-Week Bullet Report

Markets are in full swing after the Easter Holidays as political events continue to weigh. Yesterday, the GBP jumped broadly to the highest level since early October as British PM Theresa May called for a snap election this June. With the first round of French elections also coming soon, political risks are looming over the EUR and GBP. 

  • Major events of the day: it’s going to be a relatively quiet day ahead, in terms of data releases, with the final reading of euro-zone March HICP inflation due, in addition to the European Central Bank (ECB) member speeches.
  • GBPUSD had a low of 1.2511 for the day, with a high of 1.2915, making this one of the best days for the Cable in the last years. With Theresa May expected to get more backing from the House of Lords, traders have started speculating that if Brexit happens, it would probably be a better deal than previously expected.
  • The EUR continues to hang in the balance ahead of the first round of the French election this Sunday.  EUR remains somewhat depressed by the risk of an anti-EU candidate. If Macron gets through to the final round, we could start to see his probability of winning rise and the EUR strengthen.
  • The USD has retraced much of its gains since the Trump election on the 8th of November.   Some of this fall reflects lost confidence that Trump can deliver on his election rhetoric to cut taxes & boost infrastructure spending.

GOLD and JPY, as safe havens, continue to benefit from falling global sentiment and increased geopolitical tensions in the Korean Peninsula.

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With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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