Breaking: UK election will be 12 Dec (GBP positive)

FXStreet Team FXStreet

Following another day of voting in UK Parliament, the 3rd bill on an early election has come through, massively in favour of a 12.Dec UK General election.

Following Corbyn's defeated amendment to try and make the election on the 9th, instead, Commons has voted for the 12th Dec. Lawmakers have approved 12.Dec (GBP pops to 1.2864).

Result

438-20 in favour

Bill will now go to the House of Lords tomorrow.

FX implications:

Amendment 2, was set to be put to a vote was a Jeremy Corbyn amendment that would change the date of the election to Monday 9 December, from Thursday 12 December. However, "the government was opposed to this, because it would mean parliament proroguing on Thursday, making it hard for the government to pass legislation needed to approve a budget for Northern Ireland, but it has not said that the passing of this amendment would lead to the bill having to be shelved," - The Guardian.

The final reading was approved and now that an election date has been confirmed, an election is somewhat GBP bullish.

"UK's deliberation over holding a General Election may allow for a short EUR/GBP position to be entered on the basis that the election could break the Brexit impasse whilst data is likely to affirm the weakness of the Eurozone economy," analysts at Westpac argued.

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FXStreet Team

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