Pound surges as exit poll projects Tory win, Report

Pound surges as exit poll projects Tory win, Report
Pound surges as exit poll projects Tory win, Report

Today’s gains have added just over £33bn in value to London’s main stock markets.

Sterling GBPUSD, +1.2534% surged 2.7% to $1.348 after the exit polls predicted an 86-seat majority on Thursday night and held firm as the election results filtered through on Friday morning and confirmed Johnson was on course for a landslide victory. The jump was the largest one-day gain since January 2017.

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The FTSE 100 is set to open slightly higher but could experience greater gains as London wakes up to Johnson’s victory.

Johnson secured a majority shortly after 5am GMT with a number of results still to come.

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The strong majority gives Johnson the ammunition to get a Brexit deal through Parliament, avoiding investors’ fears of a no-deal Brexit or a Jeremy Corbyn-led Labour government and providing much-needed certainty.

UBS Wealth Management economist Dean Turner said: “Just as Boris Johnson was desperately seeking his majority, this result would give the markets their ultimate wish: clarity. We’ve long said that sterling looks a very cheap currency. If Brexit is indeed completed by the end of January, we see the pound trading as high as 1.35 against the US dollar.”

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