Live Feed as indeed as speculated, Theresa May is seeking an early election for Britain on June 8 to obtain a direct mandate to take the country through the Brexit divorce with the EU. The decision, which comes just three weeks after the prime minister began the formal Brexit process, has shocked British politicians as they returned from their Easter break.
That said, the announcement has come as two polls over the weekend put the Conservatives 21 points ahead of Labour, a lead that is likely to greatly increase its existing working Commons majority of 17, which hardly means a major shock for the general direction the UK is heading
- MAY SAYS SHE PLANS TO SEEK EARLY U.K. ELECTION ON JUNE 8
- BRITISH PRIME MINISTER MAY SAYS NEEDS UNITY IN WESTMINSTER, BUT INSTEAD THERE IS DIVISION
- GBP/USD REVERSES LOSS AFTER MAY SAYS PLANS ELECTION FOR JUNE 8
- MAY SAYS OTHER PARTIES OPPOSE GOVT’S BREXIT APPROACH
Watch her announcement live on Sky News:
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Having risen as high as 1.26, cable tumbled earlier today following news that U.K. Prime Minister Theresa May was scheduled to make an unexpected announcement. The currency erased an earlier gain versus the dollar, falling nearly 100 pips, down 0.3% from the highest level in three weeks.
While the contents of the announcement are for now unclear, the BBC’s top political commentator reports that May could announce a general election on June 8:
- MAY COULD ANNOUNCE GENERAL ELECTION FOR JUNE 8TH: BBC
Specifically, BBC’s Laura Kuenssberg says in Twitter post that Theresa May could announce a General Election for June 8th, citing one unidentified person familiar, although she stresses source “not confirmed”
“There is heightened speculation that there could be a snap election in the U.K.,” said Jane Foley, a senior currency strategist at Rabobank International in London quoted by Bloomberg. The pound’s fall was due to “purely uncertainty at this stage. Financial markets don’t like uncertainty and an election does raise the risk that she may not win and there may be another bout of relative chaos in the U.K.”
If so, expect even more political fireworks out of Europe, potentially leading to a much stronger sterling, on speculation that the entire Brexit process may soon be undone.