There’s been a sharp move higher in the pound in recent trade after Nigel Farage has announced that his Brexit party won’t contest the 317 Tory seats won in 2017. This is potentially a major development in the upcoming election as it greatly reduces the chance of splitting the leave vote between the Conservatives and the Brexit party.
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Open account Try demo Download mobile app Download mobile appThere’s still some way to go before Britons head to the polls but this development could put a quite different spin on how the lead in popular polls translates to seats for the Tories. This alliance between two leave supporting parties could also pressure those who back remain to follow suit and try to form similar pacts with any suggestion of a Labour/Lib Dem agreement something to watch closely in the coming weeks.
GBPUSD jumped by over 70 pips on the news from Farage, racing back to the $1.29 handle. Source: xStation
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