The pound gained almost 0.5% against the US dollar yesterday following the Brexit party’s decision to not divide the leave vote, standing aside in constituencies where the Conservatives are likely to win. This is good news for Boris Johnson as he’s now more likely to obtain the majority required to approve his EU exit deal. The markets reacted positively, as such a scenario will finally end the prolonged uncertainty that, to some extent, has paralysed the British economy over the last three and a half years.
However, today the pound has shed around half of yesterday’s gains as even though a Conservative majority is now more likely, nothing is guaranteed and the upcoming election may yet provide a surprise result, with many marginal seats still up for grabs.
