Today’s Highlights | 19.04.2017 – UK Prime Minister calls for snap election

• Yesterday, UK PM May called an early election for June 8th.
• The move aims at strengthening her hand going into the UK-EU divorce negotiations.
• In order to hold an election, she must gather support of 2/3 in the parliament (Vote scheduled today)
• The Labour party said that it will support a new election, so it is very likely to pass through.
• The pound fell ahead of the announcement, on rumors that May will call for snap election.
• At the confirmation, the currency rebounded, recovered early losses and continued to surge until it hit resistance near 1.2900 against its US counterpart. “Sell the rumor, buy the fact”.
• GBP likely to remain sensitive to headlines and polls regarding the election in the short run.
• However, we still expect the broader path to be determined by the UK-EU negotiating landscape.

Eurozone

Final CPI for March (09:00 GMT). Expectations are for the final figures to confirm the preliminary estimates.

Not a major market mover.

Speakers

ECB Board members Peter Praet (14:00 GMT) and Benoit Coeure (N/A).

Following the report that the market over-interpreted the March ECB signals, it will be interesting to hear from them, especially ahead of next week’s ECB meeting.

Boston Fed President Eric Rosengern (16:30 GMT) also speaks.

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