Pound surges as United Kingdom elections' exit polls point to Conservatives majority

Daniel Fowler
December 13, 2019

The pound has soared against the dollar and the euro as an exit poll predicted a Conservative majority.

Against the euro, sterling rose around 2% to as high as 82.85 pence, its firmest level since July 2016.

In out has been billed the most important election in a generation, British voters will determine not just the next government, but also the fate of Brexit, which has torn the nation for the past three years.

According to sources, Prime Minister Boris Johnson has promised to separate the United Kingdom from the European Union.

The latest swing reflects belief in the markets that the Conservatives will win convincingly on Thursday, ending the hung parliament that has made passage of Brexit-related legislation nearly impossible since the last United Kingdom election in 2017. It seems that China is not as much in a happy mood about the offer made by the U.S. as they seem to have issues with the 50 billion price tag and it could very well be that China my NOT accept this deal, which could lead to some heavy selling after markets traded up strongly yesterday on the hopes of a deal finally done.

Dogs at polling stations are the best thing about the United Kingdom election
The electoral commission says animals, with the exception of assistance dogs, "are not usually allowed inside polling stations ". The pair parked up at 10am this morning without much of a queue to contend with in the rural Devizes constituency station.

France's minister for Europe, Amelie de Montchalin, said indications of a decisive victory for the Conservatives had provided clarity over Brexit.

Although traditionally accurate, it should be noted that the exit poll is not the final election result and that if a potential shock is caused, the Pound could slump back towards the level of resistance turned support at $1.33.

But he said: "If the Conservatives do win a majority, passing a Brexit divorce deal in the coming weeks would remove any risk of a no deal Brexit on 31 January, reduce the immediate uncertainty and lift business investment at least a bit".

Labour is expected win 201 seats following a number of losses.

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