The pound had a strong day on Friday after the Conservative Party secured a comfortable majority in the general election. Believed to be the outcome that will solve the Brexit impasse, the pound strengthened to three-year highs against the euro and to nearly two-year highs against the dollar.
The pound is still strong as MPs, including 109 new MPs, return to Westminster this week and are due to begin the process of considering legislation paving the way for the UK to leave on the 31st of January. Talks about a future trade and security relationship will begin almost immediately. It’s thought that Boris Johnson could bring his deal before Parliament as early as this Friday.
After a very disappointing election, Jeremy Corbyn has said he will continue as Labour leader for a period of ‘reflection’ but will not stand in another general election.
Today, we’ll see Manufacturing, Services and Composite PMI data for the UK. All are expected to stay within contraction territory.
