With a majority Parliament won, PM Johnson will be able to get his Brexit deal through Parliament without further delay and take Britain out of the European Union. GBP/JPY could retrace first before going higher.
- The Conservative Party led by Boris Johnson won 363 seats, the party’s best result since Margaret Thatcher’s third election win in 1987.
- Labour’s vote slumped from the famous 40% close finish in 2017 to 32.6% or just 203 seats this time around.
- With Johnson having the majority in Parliament, he will be able to get his Brexit deal through without much resistance by the end of January 2020.
- Japanese yen, on the other hand, fell after US President Trump tweeted “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”.
- Furthermore, there are reports saying that Trump had signed the deal to pause the 15 December tariffs. This will be reported later today according to BBC news.
- We could see a retracement in GBP/JPY towards the 145.30 price level before this pair moves higher.
- Ultimately, the US-China trade deal will be the last market-mover we have for the week and how the market moves will be largely dependent on that.
Fullerton Markets Research Team
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