Sterling Marks Positive Following Prediction of Conservatives Wins in UK Dec 12 Elections

In recent times, the UK geopolitics has made major headlines on account of Brexit. The history of Brexit dated back to June 23rd, 2016 in which a 52 percent vote cast in a referendum was in favor of the exit of Britain from the European Union.

Brexit which was initially planned to occur on March 29th, 2019, but after rejections by the parliament was pushed to 31st October 2019. After another rejection round, Brexit extension was finally shifted to 31 January 2020.

The extension came after parliament did not approve the new Brexit agreement. Boris Johnson, Prime Minister of the United Kingdom, thereafter pressed for an early election. The elections of December 12 that will be held before meant the hope of winning more conservative seats, making an agreement on Brexit much easier to approve.

Various leaders of different political parties have had live interviews and polls conducted which shows the opinions and preferences of the people. An example of such polls is the YouGov poll. Back in 2017, the YouGov poll neared an almost perfect accuracy though it seemed to be an “anomaly” at first.

A YouGov poll conducted for the Times forecasted that if the elections were to hold now, the Conservatives and Labor will win 359 and 211 respectively, the Scottish National Party 43 and the Liberal Democrats 13. This is a majority win for the conservatives.

Market Fundamentals
In the news wake, the Pound edged higher on Thursday to $1.2945 from its previous market price of $1.2920 which is a 0.2 % increase, with a market gain of 0.1625%.

An analyst further predicting the next moves said if the YouGov polls sails, then the Brexit deal will pull through before December 25 without any glitches, 20th December is already high marked as a voting day, he sees Brexit meeting the January 31st deadline.

Meanwhile, FTSE 100 futures indicated a weaker start for London’s stocks, as China reacted angrily to the news that President Donald Trump signed a bill that supports Hong Kong protesters. That has fueled some concerns that trade negotiations could become more complicated.

Thanksgiving holiday in the US is expected to keep trading volumes thin for the financial market.