Han de Jong, chief economist at ABN AMRO, points out that the Conservative Party won a significant overall majority in the UK’s general elections.

Key Quotes

“For those who had hoped for a second referendum and for the UK eventually staying in the EU the outcome is a disappointment. At least it creates clarity: Brexit means Brexit. Boris Johnson will take the UK out of the EU. Presumably, the UK will officially leave at the end of January, or possibly sooner. The actual date will not matter very much as there will be a transition period in which nothing will change from a practical point of view.”

“The transition period ends at the end of 2020 according to the Withdrawal Agreement, but can be extended. During the transition period the details of the new economic relationship of the UK with the EU will be negotiated. A one year period for a comprehensive agreement looks tight. As it is in nobody’s interest to let the UK crash out without a new deal, we must assume that the transition period will be extended if needed.”

“An interesting aspect of the election result is that the Prime Minister has such a large majority he does not rely on the hardest Brexiteers. There is, thus, a chance, that the new arrangement will actually constitute a relatively soft Brexit. It is time for the PM to listen to the business community. The big unknown here is that there are many new Tory MPs and they are an unknown quantity.”

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”


GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.


XAU/USD dives to sub-$1900 levels, six-week lows

Gold extended last week's rejection slide from a short-term descending trend-line resistance and tumbled to six-week lows during the early North American session.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News