Sterling Skyrocketed while Stocks Crumbled

Sterling was in a spotlight during the Asian trading on Wednesday after Theresa May called for a snap election on June 8 that could give a positive outcome after Brexit. The currency surged more than a six-month high against the greenback while the U.S. dollar recovered a little in the Asian session with a rise of 0.15 percent against other currencies.

Safe-haven bonds continued to strengthen prior to the French presidential election despite raising tension between the U.S. and the North Korea. The dollar has weakened following a drop in U.S. bond yields to a five-month low as much as 2.17 percent.

Equities were pushed to the sidelines as futures are welcomed with losses upon the opening of German and U.K. stock market.

Japan’s nikkei steadied for quite some time but Shanghai.SSEC extended its losses with 1% drop. The Chinese market declined for four consecutive sessions because of tighter policies.

In the commodity market, gold was pulled down up to 0.4 percent to XAU=$1,287.10 an ounce while U.S. Brent crude oil prices dwindled by 16 cents at $54.73 a barrel.