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Teresa May June Election Comment: Steve Ruffley
Chief Market Strategist at Intertrader:
The call for a snap election was a bold one by Teresa May. It looks a smart move to make sure the government and May have as much control as possible over the future of the Brexit deal.
The GBP sold off on the uncertainty that any major announcement may be bad news. Especially geopolitically with regards to possible implication of supporting Trump over Korea.
Luckily it was the more sensible snap election and while all else around Brexit was unknown, May delivered what she set out to do. Everyone has to respect that. The markets reacted with short term lows below 1.25200 against the USD but quickly erased all gain and is now targeting 1.27.
I for see every trade deal the UK does to be a further spike in the GBP against the UDS and EUR. With the GBP/USD hitting 1.50 by the end of the year and the GBP/EUR hitting 0.80000
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