ForexLive Asia FX news wrap: Huge win for UK Conservatives - happy Boris day!

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday 12 December 2019 

Posting this extra early today for those getting out bed and wondering about the UK election. 

Its a big win for Boris if you want the 'spoiiler' version. 

I've also truncated the number of bullet point headlines in this wrap, if you want a blow by blow of seat counting please check out the site in full.

Forex news for Asia trading Thursday 12 December 2019 e

What started it all off:

The news was all over early for the UK election with the release of the exit poll at 2200GMT showing an enormous win for the Tories and a big majority government for Boris Johnson. The margin was too big to leave much doubt. Sure it might not be spot on but it will not be far off.

And, so far, with the bulk of seats declared, the result is indeed a big majority government for the Conservative Party. What this means for Brexit is some certainty going forward, it will happen, indeed the party is moving to bring the next vote on it next Friday (20th December) targeting an early 2020 exit. I am sure there a billion or so words to come on this, but in a nutshell, the challenge now is for the UK to work out a trade (and other issues) agreement with the EU. 

GBP jumped upon release of the exit poll, cable as high as just over 1.3500 but its been a wee pullback of 50 points and then mooching along in a range since. 

Apart from yen and CHF currencies moved higher against the USd alongside GBP. The upmoves were not as dramatic as the was cable, and pullbacks have generally been deeper (EUR/USD traded better than others) 

The UK election was not the only news of significance during the session. We got news out of the US that a trade agreement has been reached with China (we await full confirmation of this, along with signing). A 'phase 1' agreement that is, which will include some Chinese purchases of US agricultural products and ... well, we await more details. A positive development - it outs trade risks off the table for at least a little while.

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