Plus   Neg

Pound Surges Up As Tories Get Majority In Snap Election

pound dec13 lt

The pound was higher against its major counterparts in the Asian session on Friday, as the ruling Conservative party secured a landslide victory in the snap election on Thursday, ending the Parliamentary deadlock and making it possible to deliver Brexit by the end of January.

The exit poll showed that the Conservative would win 368 seats in the 650-member House of Commons, above the 326 seats needed for Parliamentary majority.

The Labour party was predicted to secure 191 seats. The Scottish National Party was expected to win 55 seats and the Liberal Democrats, 13.

The results suggest that PM Johnson could push his Brexit deal through Parliament and take the United Kingdom out of the European Union by the January deadline.

The outcome is likely to bring an end to the Brexit deadlock in Parliament that has paralyzed the country.

The currency performed in a mixed manner against its key counterparts on Thursday. While it fell against the greenback and the euro, it was steady against the franc. Versus the yen, it rose.

The pound was 2 percent higher at 0.8276 against the euro, its biggest since July 2016. At Thursday's close, the pair was valued at 0.8446. Extension of the pound's rally may lead it to a resistance around the 0.80 region.

The pound broke the key 1.35 mark against the greenback, rising almost 2.6 percent to a 1-1/2-year high of 1.3515. The pound-greenback pair had finished deals at 1.3163 on Thursday. Should the pound rises further, 1.36 is possibly located as its next resistance level.

The U.K. currency surged 2.7 percent against the franc, approaching more than a 7-month high of 1.3311. At yesterday's close, the pair was trading at 1.2961. Further rise in the pound may face resistance around the 1.35 area.

The pound jumped 2.8 percent to 147.95 against the yen, a level unseen since March 18. The pound was trading at 143.86 per yen at yesterday's close. The pound may locate resistance around the 150.00 mark.

Final data from the Ministry of Economy, Trade and Industry showed that Japan's industrial production declined more than initially estimated in October.

Industrial production fell 4.5 percent month-on-month in October. According to the initial estimate, production had decreased 4.2 percent.

Looking ahead, the Bank of England/TNS consumer inflation expectations for November are set for release in the European session.

The U.S. business inventories for October, retail sales and export and import prices for November are due out in the New York session.

For comments and feedback contact: editorial@rttnews.com

Forex News

Follow RTT