LONDON – The value of the British pound is barely budging from above $1.28, nearly 24 hours after Prime Minister Theresa May confirmed that she will seek to hold a general election on June 8.
By 11.00 a.m. BST (6.00 a.m. ET) on Wednesday sterling has moved down just 0.1% against the dollar on the day, having gained more than 2% during trading on Tuesday.
Here is the chart:
Commenting on the day’s movements, Kathleen Brooks of City Index writes in an email:
"GBP/USD is backing away from the 1.2860 high from earlier in the session today, but after a 300-point jump in GBP/USD since yesterday the market is poised to take a breather. Also there could be some nervousness as we wait for Parliament to debate the motion to hold the General Election onJune 8th. The debate takes place at 1230 BST, with the vote expected some time later. A win for May could see another pop higher for the pound."
On Tuesday, Prime Minister Theresa May called for an early general election. May announced that an election will take place in just six weeks' time on June 8, saying it is in "the national interest" to do so.
The prime minister added that she would put a motion to parliament on Wednesday calling on MPs to vote in favour of a snap election. May said an election victory for the Conservatives would "guarantee certainty and stability for the years" and give her the public support to deliver her policies, including Britain's imminent departure from the European Union.
And the polls are in line showing that Tories are set to win the election by a landslide victory.
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