PIG TODAY-Pound stays above $1.28, with U.K. lawmakers expected to OK snap election

The pound slipped back in early Wednesday trade, but stayed above $1.28 as U.K. lawmakers prepared to vote on Prime Minister Theresa May’s plan for an early general election in June 8.

Sterling GBPUSD, -0.0467%  bought $1.2816, down from $1.2841 late Tuesday in New York.

The U.K. currency on Tuesday jumped by the most in three months, to its highest level since October. The move came after the British leader in a surprise move said the country needs a snap election to give the government a clear mandate ahead of the crucial Brexit negotiations with the European Union.

The House of Commons will Wednesday vote on May’s election plan, and is widely expected to vote in favor.

The renewed pound optimism came as the election announcement spurred hopes that May’s Conservative Party could win a bigger majority in parliament and put the U.K. in a better position to navigate through the upcoming divorce proceedings with Brussels.

“By looking at the sterling rally, it appears that traders are getting well ahead of themselves on the back of the polling data,” Naeem Aslam, chief markets analyst at Think Markets, in a note.

“Theresa May could easily win the upcoming election according to the latest polls, however, this doesn’t mean that Brexit negotiations with her EU partners would be any easier. We do not think that Theresa May’s victory will have a substantial impact on the Brexit negotiations because it is the EU [that] will be calling the shots,” he added.

See: Surprise election move shows U.K.’s Theresa May wants to lead Europe

Against the euro, the pound GBPEUR, +0.0501%  slipped to €1.1961, compared with €1.1968 on Tuesday.

The greenback has been under selling pressure recently, as traders have started to unwind the so-called Trump trade that had fueled expectations of higher inflation and higher interest rates in the U.S.

“The dollar is a touch higher this morning as beleaguered bulls bounce back off the ropes, but this is still likely to be seen as an unwinding move that will give another chance to sell,” said Richard Perry, market analyst at Hantec Markets, in a note.

Against the yen, the dollar USDJPY, +0.41%  was changing hands at ¥108.94, up from ¥108.42 late Tuesday in New York.

The euro EURUSD, -0.0839%  bought $1.0718, down from $1.0730 on Tuesday.