ForexLive Asia FX news wrap: Huge win for UK Conservatives - happy Boris day!
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.
- A look at the pound as we count down to the imminent Tory landslide victory
- US Pacific Fleet Commander says China is militarising the South China Sea
- More from the senior China diplomat - the US has gone astray
- UK election: The 'red wall' is starting to crack
- Financial Times on the UK election: Brexit will now happen
- FX option expiries for Friday December 13 at the 10am NY cut
- EU Commission head says will get mandate from EU leaders tomorrow for next steps in the Brexit process
- Sweden's PM says the result of the UK election is clear - Brexit to move forward
- UK government is planning on moving on Brexit (withdrawal bill) in one week
- BOJ quarterly Tankan report out now - manufacturing mood worsens
- China has agreed to buy USD50bn in ag products in 2020 (sources)
- GBPUSD extends to new year highs (and then some)
- UK election EXIT POLL results out - Conservatives set to win 368 seats
- UK election: Exit poll forecasts a big Conservative majority
- Art of the deal guy hands another big win on trade to China
- Trade ideas thread - a late night for the UK folks coming up
- New Zealand Manufacturing PMI for November: 51.4 (vs. prior 52.6)
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.