What was responsible for the GBP upsurge of more than 300 pips on Friday 13th Dec. Please any insights
I hope you were not short. Just don’t expect this sort of performance every Friday.
The surge occurred at the end of market Thursday into Friday and was over very quickly. We spent the rest of Friday drifting back down to about 50% level of that surge.
Thursday was the big election day in the UK and the biggest issue was whether the Conservative party would get a sufficient majority to be able to pass Brexit through parliament. As the results start to come through it started to look like they were making some good gains. And then came the announcement that they definitely had a strong majority, probably larger than most people expected, and included many seats that had traditionally always voted Labour.
The markets liked the fact that at last the UK has, once again, a majority working government.
Certainly good news, but not the only major issue outstanding. Although the end of Brexit is now a certainty in January, it is only the start of the UK/EU trade negotiations to replace the EU trade terms.
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