Market Overview

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

Share:
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

 

Posted-In: Boris Johnson Brexit british poundGovernment News Politics Media General Best of Benzinga

 

Related Articles (SPY)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com