Boris Johnson has beaten all expectations and secured the Tories’ best result since Thatcher. With a small number of constituencies still to declare, the BBC forecast that the Conservative Party will end with a majority of 78, securing 364 seats in the Houses of Parliament, against Labour’s 203 seats.
Sterling rallied hard against the Dollar and the Euro as the first exit polls were announced last night. The Pound had its sharpest surge in a decade, climbing by over 3 per cent to a 19-month high of above $1.35 and traded above €1.20 – its highest level since July 2016.
The currency market has taken the view that Johnson can now “get Brexit done”. With his deal in place, the stage is set for the UK to formally leave the European Union on 31 January 2020. Members of Parliament could well sit as early as next Friday, 20 December for the withdrawal agreement bill to be introduced and voted on before Christmas.
With no top-tier data releases scheduled for today, markets will have time to digest the election result further, but will also pay attention to the US and the impeachment proceedings against Donald Trump. The US House Committee on Judiciary will vote on two impeachment charges against the president at 15:00 (GMT) today, 13 December.
If the Committee passes the vote, the Senate will then hold a trial next month. It seems unlikely that Trump would be removed from office as his Republican Party holds a majority. However, he will become the third US president to be impeached after Andrew Johnson in 1868 and Bill Clinton in 1998, which could make next year’s election tougher to fight.
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