Market Overview

Pound Jumps To The Highest This Year As Boris Johnson Heads For Majority

Pound Jumps To The Highest This Year As Boris Johnson Heads For Majority

The pound sterling jumped to its highest level against the U.S. dollar in 18 months late at 1.3478 on Thursday. The impressive 2.40% rise comes at the backdrop of the U.K. general election.

The GBP also hit 1.2039 against the Euro, the highest in more than three years.

What Happened

The incumbent prime minister Boris Johnson is headed for a clear majority, according to a Reuters exit poll. Other exit polls are suggesting similar results.

The Conservative and Unionist Party to which Johnson belongs has won 243 seats, the results published as of press time. Its main opponent, the Labor Party, has won 161.

Why It Matters

Johnson's win in the election means that a Brexit deal he struck with the E.U., relating to the U.K.'s exit from the bloc, earlier this year is certain to pass, Reuters noted.

In October, the members of parliament rejected Johnson's bid to fast-track his Withdrawal Agreement Bill for the Brexit, leading to him abandoning the legislation and calling for an early election.

The U.K. faces a January deadline to exit from the E.U. after the bloc granted it another three months extension on the previous deadline.

Photo Credit: UK Government via Wikimedia



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