After the GBP storm that was triggered by Theresa May call for early elections, calmness has returned to the market. Yesterday and so far today, there are a few market movements worth mentioning. With the lack of significant data releases scheduled for today, it is very likely that the market will not be very volatile today either. 

Major events of the day: Today’s calendar includes US initial jobless claims, Philly Fed business outlook and EU consumer confidence.

UK PM Theresa May received House of Commons’ backing for her 8 June election call yesterday, and GBP/USD is trading just off the 1.28 mark, levels not seen since October last year, with UK stocks suffering as a result.

US equities started the day on a strong footing, but returned gains. The Dow (‐0.58%) and S&P (‐0.17%) even closed with losses. Overnight, Asian sentiment is better with gains of up to 0.5%.

Yesterday, GBP/USD maintained most of Tuesday’s impressive gains after UK PM May called for a snap election on June 8. USD/JPY hovers little changed near the 109 level, while EUR/USD hovered in the 1.0725 area, near this week’s high. Commodity currencies remain in the defensive after yesterday’s sharp decline of the oil price. AUD/USD is trading in the 0.75 area while USD/CAD jumped to the high 1.34 area.