Brexit Briefing: GBP Outlook Improves on Election Boost for Conservatives
GBP price, Brexit news and analysis:
- Nigel Farage, the leader of the Brexit Party, has decided not to put up General Election candidates in seats held by the ruling UK Conservative Party, led by Prime Minister Boris Johnson.
- That is a significant boost for the PM that will likely help GBP as Sterling generally benefits from Conservative governments.
GBP gains as Brexit Party gives Conservatives a free run
Nigel Farage, who leads the Brexit Party, has decided unilaterally not to contest seats held by Prime Minister Boris Johnson’s Conservatives in a move likely to boost the PM’s chances of winning the UK General Election on December 12.
His decision is an attempt to prevent anti-Brexit parties such as the Liberal Democrats, the Scottish National Party and the Greens from winning a majority, and has boosted Pound bulls, who generally prefer Conservative governments to those of the main Opposition Labour Party.
Moreover, that Sterling strength could well persist as it boosts the chances of a Brexit deal after the election rather than a no-deal exit from the EU.
EUR/GBP Price Chart, Two-Hour Timeframe (October 11 – November 12, 2019
Chart by IG (You can click on it for a larger image)
Farage’s decision is likely to please US President Donald Trump, who has said he would like to see his “friends” Johnson and Farage form a pact to secure a pro-Brexit Parliamentary majority in the election.
We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
Resources to help you trade the forex markets:
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:
- Analytical and educational webinars hosted several times per day,
- Trading guides to help you improve your trading performance,
- A guide specifically for those who are new to forex,
- And you can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.
--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.