The pound skyrocketed overnight, outperforming all the other G10 currencies, after the UK election exit polls suggested that the Conservatives will get an 86-seat majority in Parliament. Elsewhere, equities rallied and safe havens slid on news that the US and China have reached a “deal in principal” over trade. We also had an ECB policy meeting yesterday, with the new President, Christine Lagarde, saying that there are some stabilization signs in growth slowdown.
GBP RALLIES AS CONSERVATIVES GAIN PARLIAMENT MAJORITY
The pound rallied against all of the other G10 currencies on Thursday and during the Asian morning Friday. It gained the most against JPY, CHF and CAD, while it eked out the least gains versus NOK, AUD and NZD.
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