This morning’s shocking announcement caught virtually everybody by surprise, and is prompting one bank after another to thoroughly revise their cable forecasts, case in point Deutsche Bank, whose strategist George Saravelos just announced he is changing his view on sterling because the “early elections are a game-changer”, something which the market clearly anticipated judging by the surge in cable…

… a surge which will prompt the near record number of GBP shorts to cover en masse.

To be sure, May’s announcement does make sense in retrospect: as Unicredit’s Vasileios Gkionakis notes, May’s logic is sound: “It’s good to have the elections now that you have good U.K. numbers, which are mostly dependent on global growth, because when you start seeing the U.K. idiosyncratic factors filtering through, potentially her popularity is going to throb a bit”

As for Saravelos, his full note below: