At the time of writing the Conservative Party have just secured a majority in Parliament, with 70 seats still to be declared. No doubt this number will change and may even be altered by the last paragraph of this piece. It’s been an emphatic night for the Tory Party who are expected to win a c.75+ seat majority – the best result since the Thatcher years.
The pound has responded very positively, pushing towards the $1.35 and €1.21 levels against the buck and shared currency, respectively. All previous near-term resistance levels have been breached as the Great British Pound rallies to multi-year highs. The next 12 hours of trade will be pivotal in providing clues as to whether there’s more left in the tank or if a retrace is on the cards.
It’s going to be a big day across markets with the Labour Party in disarray. No doubt Jeremy Corbyn will be standing down at some point this morning. We will not see any announcements from the Liberal Democrat leader as Jo Swinson in fact lost her seat.
The market will begin to become choppy as European participants arrive at their desks between 7am – 8am. Please contact your Cornhill FX dealer if you’d like any requirements executed at these levels. We will have coverage from 6:45am.
Written by Viv Savani. 7:21am, December 13th 2019
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