Johnson Reigns Continue, Pound Exchange Rate Soars

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December 16, 2019

John Marley

Last week was an extreme roller-coaster for the British pound exchange rate as it was the election week. After the Conservatives were hailed as the majority, the sterling gained altitude in trading sessions.

All the major currencies were crushed by the pound on Friday following the release of the election results. The pound futures rallied 1.84% or 0.0242 points after Johnson promised a Brexit before January ends to his fans on Friday morning.

Meanwhile, the GBP USD trading pair leaped 1.59% or 0.0209 points in Friday’s trading. The sterling successfully caught the greenback on its back foot, pushing it on the defensive.

Then, Europe’s known safe-haven asset, the Swiss franc, was reeled in on the losing side by the pound last week. The GBP CHF pair peaked at 1.37% or 0.0177 last Friday.

And the single currency to pound exchange rate was floored down to the negative territories on Friday. The EUR GBP pair plunged 1.17% or 0.0098 points in trading sessions.

Love from Trump

Last week, the US President Donald Trump congratulated Boris Johnson for winning the UK election.

America’s leader tweeted his greeting to Johnson. Trump is known to be a long-time supporter of his British counterpart and it didn’t take him long to jump in on the excitement.

In his tweet, Trump said that the UK and US will negotiate a possible trade deal after Johnson delivers Brexit. He added that the deal between him and Johnson could be greater than the BPM’s deal with the European Union.

The British Prime Minister ran under the slogan of “get Brexit done” which supported the pound exchange rate further. Aside from being Johnson’s support, Trump has always favored a UK-EU divorce.

As early as Thursday evening last week, Trump already tweeted that he was looking forward to the BPM’s win. And during his visit to London, Trump praised the Prime Minister confidently saying that he is capable of bringing Brexit.

In a previous interview, the US President even said that if Corbyn wins it would be bad for the UK. Then after that, he expressed his warm approval to the Tory leader, saying that he is a “fantastic” man.