LONDON — The British pound has had a quiet day on Wednesday as investors and traders take stock following Parliament's decision to call a general election to be held on June 8.
By 4.00 p.m. BST (11.00 a.m. ET) on Wednesday sterling has moved down just 0.2% against the dollar on the day, having gained more than 2% during trading on Tuesday. It was largely unmoved after MPs confirmed a general election, voting 522-13 to approve the election.
Here is the chart:
Commenting on the day's movements, Kathleen Brooks of City Index writes in an email:
"GBP/USD is backing away from the 1.2860 high from earlier in the session today, but after a 300-point jump in GBP/USD since yesterday the market is poised to take a breather. Also there could be some nervousness as we wait for Parliament to debate the motion to hold the General Election on June 8th. The debate takes place at 1230 BST, with the vote expected some time later. A win for May could see another pop higher for the pound."
On Tuesday, Prime Minister Theresa May called for an early general election. May announced that an election will take place in just six weeks' time on June 8, saying it is in "the national interest" to do so.
MPs voted by 522 to 13 in favour of an early general election, easily passing the two-thirds majority threshold required under the Fixed Term Parliaments Act. Around 100 MPs abstained.
Labour MPs who backed the motion were ridiculed by Conservative MP Desmond Swayne for being "turkeys [who] vote for Christmas" following a string of opinion polls showing May is on course to win a landslide election victory.
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