The Pound skyrocketed to its highs. Overview for 13.12.2019
GBPUSD is heading towards the highs of spring of 2018 after preliminary results of the early parliamentary elections were announced.
The British Pound almost reached the highs of May 2018 against the USD. The current quote for the instrument is 1.3410.
According to the preliminary results, the Conservative party got at least 368 out of 650 seats in the early parliamentary elections that took place yesterday. The party hasn’t seen such strong results for a very long time, while for its opponent, the British Labor Party, they are the worst over 40 years.
Now, the British Prime Minister Boris Johnson has to navigate all necessary documents for the Brexit through the renewed Parliament. This convocation of the Parliament is expected to be more suitable for ratifying the agreement with the European Union. In case everything goes the way as it should, the United Kingdom may exit the alliance within the specified time, before the end of January 2020.
Actually, upsurge in the Pound describes the situation perfectly. It’s amazing that Johnson didn’t cave in to the opposition put up earlier in the House of Commons.
In the short-term, investors’ attention will slowly switch to London-Brussels talks on trading conditions. This week, it was said this week that the parties were very unlikely to have enough time for discussing everything that concerned trade relations and making a deal until the end of January. In this case, the United Kingdom may exit the European Union with a minimum set of trading arrangements. The rest of them will have to be madу off the cuff.