Pound Consolidates Following Tuesday’s Rally

The Great Britain pound was in a consolidation mode today following yesterday’s rally caused by the surprise announcement of a snap general election in Britain this year. The sterling traded flat for the most part against its major peers, though rose a bit against some of them, including the Japanese yen.
British Prime Minister Theresa May announced surprise elections in a bid to consolidate power as her political party currently is popular among Britons. That should give her firmer footing in negotiations with the European Union during the Brexit process. The reaction to the announcement suggested that investors welcomed the decision, but now the market calmed down as traders evaluate their options after the sterling’s impressive rally.
GBP/USD traded near its opening level of 1.2837 as of 13:14 GMT today. GBP/JPY ticked up from 139.15 to 139.85.

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