The Pound strengthened as polls indicated that British Prime Minister Theresa May is on course to win in a landslide victory in the June 8 election. This confirms the view that she will get a stronger mandate for two years of Brexit talks. A stronger mandate for May in parliament could likely give her the authority she needs over her own party in order to negotiate Brexit.
Speaking at the Institute of International Finance's Washington Policy Summit, Mark Carney said that regulators should end an "excessive reliance" on mega-fines for banks. Carney called for a "dynamic" approach to regulation, becoming more flexible but ensuring that the global financial system remains resilient.
Carney said that "authorities cannot and should not try to legislate for every circumstance, watch every transaction, or anticipate every market innovation. So while fines and sanctions have roles in deterring misconduct, they will not, on their own, bring about the cultural change we need." He added: "We must move from an excessive reliance on punitive, ex post fines of firms to greater emphasis on more compelling ex ante incentives for individuals, and ultimately a more solid grounding in improved firm culture."
The Euro gained against the U.S. dollar yesterday, ahead of the first round of the French presidential elections due to take place on Sunday. Polls forecast that the most likely outcome will be that Emmanuel Macron will go head-to-head against Marine Le Pen in the May 7 second round. French centrist candidate Macron was seen in polls to be easily beating far-right Le Pen in the second round. Some surveys show Le Pen would lose the final vote, whoever she faces.
Support for Macron has risen to 25 percent, while Le Pen has been unchanged at 22 percent, according to a poll released yesterday. Fillon slipped one point to 19 percent, level with Communist-backed Jean-Luc Melenchon.
09:30 - GBP: UK Retail Sales m/m, expected at -0.3% against a previous of 1.4%