The pound has strengthened against the euro and the dollar as the Conservatives have secured a comfortable majority in Parliament. Sterling has reached a 19 month high against the dollar and more than a two year high against the euro, as a Conservative majority is thought to solve the Brexit impasse. With one seat left to declare, the Tories have a majority of 77, which will make it easier to pass their Brexit deal through Parliament and take Britain out of the EU at the end of January.
The Conservatives succeeded in taking traditional Labour strongholds across the country, including Blythe Valley, which has been a Labour constituency since it’s creation in 1950.
It was, therefore, a very disappointing result for the Labour Party, which lost seats across the North, Midlands and Wales, securing just 203. Jeremy Corbyn has announced that he will step down as Labour leader. The Liberal Democrats got 11 seats and lost their leader, Jo Swinson, in the process, as her constituency was taken over by the SNP. The SNP have performed better-than-expected with 48 seats, and Nicola Sturgeon has declared this as a mandate for a second referendum on Scottish independence.
Leaving the European Union at the end of January is the beginning of a process that will continue throughout 2020, as Johnson will also face the task of negotiating a future trade deal with the EU, which he has promised to do within 12 months. It’s therefore possible that the pound could face volatility throughout the coming year.
