The British pound fell by 1.6% to $ 1.2747 as a result of the relative defeat of the Conservative Party in the UK elections.
Prime Minister Theresa May was betting that she would strengthen her party’s power in the House of Representatives, but Labor’s results showed that Labor was gaining strength.

The British pound is now 3.5% higher than it was at the beginning of the year and above $ 1.1821, the lowest in the past year, falling more than 10% after the referendum on exiting from the European Union.

Yesterday, Wall Street posted slight gains following the testimony of former FBI chief James Coomy about Trump’s contacts with Russia prior to the election.
The markets, in general, ignored the potential for political turmoil in his testimony.

The price of the oil holds steady at $ 45.61 for a WTI barrel.
The Euro is down by 0.2% to $ 1.12 and the Japanese yen retreated by 0.3% to 110.33 yen per dollar.

Moderate price rises are recorded on the Asian stock exchanges.
In Hong Kong and Singapore 0.3%, in Shanghai 0.1%.
Tokyo drops 0.4% after weaker-than-expected growth data in Japan.

The growth in Japan is significantly lower than originally estimated.
In the first quarter was much lower than previously estimated, according to government figures.
Japan’s GDP grew at an annual rate of 1%, while the initial estimate was 2.2% growth, with growth of 0.3%

The Japanese yen reported stronger import and export data than forecast for May, despite falling commodity prices, suggesting that its economy is performing better than estimated despite fears of a sharp slowdown.

Imports to China jumped by 14.8 percent in May, after rising 11.9 percent in April, while exports climbed 8.7 percent, both above expectations.
The country’s trade balance fell to $ 40.8 billion, while forecasts projected an increase to $ 46.3 billion.

In the forex markets relaxation – the pound sterling and the Euro are trading almost unchanged.
Euro at $ 1.1258, British pound at $ 1.2954.
Against the yen, the US dollar dropped 0.2% to 109.65 yen.

The Asian markets are trading this morning in a mixed trend.
Tokyo and Hong Kong remain stable, with a slight tendency for declines of up to 0.1%.
Shanghai adds nearly 1% and Singapore is up by 0.2%.

In the markets vigilance is evident ahead of three major events that will affect trading:

1.Britain’s general elections will be held tomorrow.
2.The ECB is expected to publish its policy decision.
3.James Coomy, the dismissed FBI chief, is supposed to testify about his talks with US President Donald Trump on ties with Russia.

The Crude oil, which rose almost by 2% yesterday, keeps to be steady this morning.

The Wall Street markets closed yesterday on declines at the backdrop of tensions in the Persian Gulf.
The Dow Jones Industrial Average fell by 0.2%.
The S&P 500 Index declined by 0.3% and the Nasdaq Composite Index fell by 0.2%.

The trading on the European stock exchanges is going down slightly.
London is down by 0.1%, Frankfurt is down by 0.4%, Paris loses 0.5%.

Investors are looking for a “safe haven” against the background of the US dollar’s slide to its lowest level in eight months and the fall in yields on US government bonds to its lowest level since November.
The yield on US 10-year bonds fell to 2.157% and the price of gold rose by 0.7% to $ 1289.19 per ounce, the highest since April 19.

The trading on the Asian stock exchanges is on the decline as the Japanese yen strengthens.
Tokyo closed down by 1%, Seoul weakened by 0.1%, Hong Kong rising by 0.2%, Shanghai trades unchanged, Singapore is down by 0.1% and Sydney plunged 1.5%.

The Oil traded slightly higher at the backdrop of tension in the Persian Gulf after Saudi Arabia, Egypt, the United Arab Emirates and Yemen yesterday announced the severing of diplomatic ties with Qatar.

Will Britain’s elections shake the markets?
After Wall Street and the European stock exchanges broke records last week, the trading will take place this week at the backdrop of Britain’s upcoming elections, as well as a host of macroeconomic data.

On Friday, Wall Street closed at a high on expectations of an interest rate hike in the US, despite a disappointing employment report.
In Europe, the stock exchanges in London and Frankfurt broke records, while the sterling fell in the wake of polls ahead of Thursday’s election in Britain.

On Wall Street, the reporting season is coming to an end as all major companies have already published their first quarter reports, and trading will be affected by macroeconomic data to be released this week in the US, including consumer credit, factory orders and wholesale inventories. GDP for the first quarter.
On the same day the ECB will announce its interest rate decision.
According to all assessments, interest rates in the euro zone are expected to remain unchanged at a record low.

The trading on the European stock exchanges opened with price hikes as investors’ eyes are on the US, where the employment report will be released today.
Most forecasts suggest that the US economy added 180,000 jobs in May, but after yesterday’s ADP private sector employment report surprised, some economists expect a positive surprise today.
The ADP Private Sector Employment Report indicated an addition of 253,000 jobs to the private sector, a figure significantly higher than analysts’ forecasts of only 185,000 jobs.

The Euro strengthened against the US dollar by 0.1% and traded around $ 1.1222. The British pound is down 0.1% against the dollar and is trading around $ 1.2866.

The trading in Asian stock exchanges was conducted with price hikes, and Tokyo crossed the 20,000 mark
Tokyo rose by 1.8%, Hong Kong adds 0.3% to its value, Shanghai was up by 0.1%, Sydney rose by 0.9% and Seoul gained 1.2%.

Wall Street indexes closed slightly lower after a mixed macroeconomic data released in the US, but completed the best month since February, as banks and energy stocks led yesterday’s falls on Wall Street.

This morning, the Asian stocks are trading on a mixed note and the Tokyo Stock Exchange is up 1%.
Shanghai is losing 0.5% after a drop in factory activity in China for the first time in a year.
Hong Kong is up 0.3%, Seoul is down 0.1%, and Sydney is up 0.1%.

The Japanese yen weakened 0.1% to 110.4 yen.

The activity of factories in China shrank in May for the first time in a year, according to the purchasing managers’ index of Kaixin.
The index fell to 49.6 from 50.3 in April.
Each level below 50 points reflects a contraction in production.

The French economy continues to gain momentum. The French economy grew at a faster rate than initial estimates in the first quarter of the year, but still has a low growth rate relative to its neighbors to the Euro zone.
French Statistics Insee reported today that France’s GDP grew by 0.4% in the first quarter, compared with an initial estimate of 0.3% growth.

The European interest rates will remain at a record low despite the recovery of the Euro zone economy, as the recovery is still not sustainable, ECB President Mario Draghi said in a speech at the European Parliament.
He explained that inflation should stabilize around 2% and that productivity should grow until the interest rate rises.

Optimism in the markets after the elections in France: the CAC jumps by 3%.
The first round of presidential elections in France ended yesterday in line with early predictions.
The center-left party candidate Emmanuel Makron and candidate of the right-wing National Front party rose to the second round in the May 7 elections.
The European stock exchanges react with gains in opening the trade and the French CAC index jumps by 3%.
The Asian stock exchanges are trading in a mixed trend with a tendency to rise.
In general, elections in France are not considered to have a significant impact on the markets, but this time they were perceived as a fateful event that could determine the continued existence of the EU.

Trading Opportunity
USD/CAD

On the daily chart we can see that last week the pair once again came close to a resistance area. around the level of 1.3530.

It was the fourth time since last November that this resistance kept the pair below it.

Our tendency is to sell, to do so we will go to a lower time frame.
On the one hour chart we marked an intra-day support line, around the level of 1.3450.

If the pair will break and closed below this level we can try and enter with a PUT trade.

The trading on the European stock exchanges is on the rise, with the Paris Stock Exchange down 0.4% after the terrorist attack yesterday in Paris, three days before the French presidential election.
London rises by 0.2%, Frankfurt climbs by 0.1% and the Stokes 600 European index is up 0.1%.

The Euro is up by 0.2% against the US dollar to $ 1.07 per euro.

French manufacturing and services indices rose in April to a six-year high.
The PMI manufacturing index rose to a 72-month high of 55.1 points.
The services index climbed to its highest level in 71 months at 57.7 points. Any score above 50 reflects an increase in economic activity.

Wall Street closed yesterday with a rise for the first time in three days led by fingernails and raw materials, and NASDAQ closed at a record high, after the US Treasury Secretary said that the tax reform in the US will be presented very soon, and President Trump ordered to examine the restriction of steel imports to the United States.

Trading Opportunity
AUD/USD

On the 4 hours chart, after a clear downtrend, the pair once tried to broke above the trend line but failed, as it was a false break.

Now there is another attempt, what can we do from here?

On the 1 hour chart we can see that after a double wave down (part of the false break) a double wave up is created.

We marked a down trend line, when (and if) the pair will closed above it, it would be a signal to buy CALL options.