Sterling soars as Conservatives head for a majority
The pound is soaring after the exit polls showed the Conservatives winning a strong majority in the 2019 general election.
This has been a bitterly fought election that has once again divided the nation but perhaps not as much as it could have. Should the exit polls prove to be accurate, it will be a huge majority for Boris Johnson and one that ensures his Brexit deal flies through Parliament and the UK leaves the EU by the end of January.
Boris’ gamble that getting Brexit done mattered most to the British public has proven correct and he now has a strong mandate to deliver on the will of people.
The pound had rallied a little into the result over the last week or so and for once, optimistic sterling traders were not burned. The referendum result may have left them a little less confident going into this evening but their faith has been rewarded with the pound jumping more than 2% against the US to its highest level in a year and a half.
GBPUSD Daily Chart
Of course, people will be watching the results as they appear throughout the night as there’s no guarantees these polls are necessarily correct but to overturn such a strong majority would be an enormous shock.
The uncertainty of Brexit and then the referendum has weighed on the pound and the economy for years. While Boris’ deal may be viewed by many as a hard form of Brexit, this offers the certainty that hasn’t existed for too long.
The night ahead will undoubtedly be eventful and the volatility we’re seeing in sterling is likely to continue but markets have made their feelings clear and they’re pleased.
