The list of traditional Labour seats falling to the Conservatives, some for the first time, continues to lengthen as the results from the British election pour in.
Exit polls which are restricted in the UK until the voting concludes at 10:00 pm immediately predicted a stunning Tory victory with 368 seats and the largest majority since 1987. Labour was projected to crash to 191 members, it worst return since 1935 and 71 lower than two years ago.
Prime Minister Boris Johnson will have received a powerful endorsement for his campaign slogan to ‘get Brexit done.’
Many of the Labour seats that switched to the Conservatives had voted to leave in the referendum of June 2016. Labour’s opposition to Theresa May’s Brexit deal earlier in the year appeared to have cost many MPs their seats.
Sterling soared as soon as the poll was announced racing three figures to 1.3514 it’s strongest against the dollar since May 2018. The EUR/GBP fell almost two figures from 0.8454 to 0.8274 the lowest it has been since the weeks immediately after the June 24, 2016 exit referendum. The euro rose as well, adding about 50 points versus the dollar to 1.1172.
Mr. Johnson had aimed for an election since assuming the premiership following Theresa May’s resignation as the only way to break the deadlock in Parliament over Brexit. Though the country had voted 51.9% to 48.1% to leave the EU a majority of MPs opposed departure. The shifting alliances of those opposed had worked to defeat three attempts by Ms May’s Conservative government to gain approval.
The election was a rout for the parties wanting to reverse Brexit with a second referendum. The Liberal Democrats who campaigned against Brexit were demolished and forecast to retain just 13 sets. Their leader Jo Swinson lost her seat to the Scottish National Party (SNP) challenger Amy Callaghan by 149 votes.
The SNP triumphed in Scotland, which voted heavily to Remain and was predicted to take 55 of 59 seats in the country. Nicola Sturgeon the SNP leader favors independence and wants to hold another referendum but requires permission from Parliament for an official vote.
Brexit takes place on January 31st when the UK is scheduled to officially leave the European Union and Prime Minister has said he will honor the date. The future trade relationship of the UK and the EU will be the subject of negotiations over the next year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.