Confidence In Brexit Led To Huge Pound Buy-in

Winter is coming, so is the UK general election where political parties battle off to obtain the majority vote. The winning party will get the power to ratify the Brexit deal through the Parliament and deliver Brexit after 3-years of delay. With the previous Brexit Party led by Nigel Farage out of the contest, two remaining major parties are PM Boris Johnson’s Conservative Party (Tories) and opposition Jeremy Corbyn’s Labour Party. 

Current opinion polls for the past few days put the Tories ahead of the Labour by a margin of between 9 and 12 points, where under normal circumstances, it would guarantee a majority in the House of Commons. Mostly Tories currently occupy the House of Lords, so PM Johnson’s main objective would be winning over the Members of Parliament (MP) among the Commons. 

With just less than two weeks to go until the election takes place on December 12, investors are now betting on the Conservative Party to win the election, with Johnson making history as the PM to deliver Brexit, surpassing his predecessor, Theresa May who fought hard but was rejected by her own Parliament. 

If the election results are as what the market expects, PM Johnson will have to find ways to keep his manifesto promise, which was delivering Brexit before Christmas. If that fails, the Conservative will then have until January 31 to bring the country out of the European Union (EU). The next step after Brexit would be negotiation with the EU in terms of trade relations between the 2 regions. 

Photo Credit: www.spectator.co.uk