UK: Conservative majority positive for the pound – ING

Analysts at ING note that the UK pound surged on news that the Tories could secure a thumping majority and we’ve already seen a 310 pip move taking GBP/USD close to 1.35.

Key Quotes

“Large working majorities have typically been good for the pound over the last forty years and under a scenario of a large Conservative majority we had a short-term target for GBP/USD at 1.35 – already hit. We ultimately expect GBP/USD pushing onto the 1.38/40 area through 2020, assuming a Brexit transition extension is negotiated.”