Today is a busy day for markets as we see three key event staking place form three major economies.
Out of the UK, we have the parliamentary elections taking place today, in which British citizens will be voting for a new parliament. The GBP remains well supported as polls show the conservatives are in the lead but will remain sensitive to any exit polls and news regarding the election. As it stands the GBP is pricing in a conservative win and any disappointment in this outcome will see the GBP unwound aggressively, also worth noting is that if the conservatives do not receive a majority vote, this could be seen a bearish as the party then needs to form a coalition which exposes additional political risk as uncertainty grows.
Out of Europe, we have the release of the European Central Bank (ECB) announcement on the Minimum Bid Rate, expected unchanged at 0%, before a press conference is in which they will discuss their views and any possible changes to monetary policy. Should the head of the ECB, Mario Draghi, strike a positive tone in which he sees the need to hold off on further stimulus or begin to unwind the already existing QE, we would see the EUR move higher across the board. However, should he strike a more pessimistic tone in which he states the need for further action from the ECB, we will likely see the EUR drop aggressively.
Out of the US, we will see the former FBI Director, James Comey, testifying to the Senate comity. Should he shed more negative light on President Trump, the USD and US assets will react negatively as the presidency becomes more unstable and the future of the expected tax cuts and regulatory amendments seem further and further away.