Mon. Jan 18th, 2021

Pound hits 31-month high against the euro on Tory win predictions – business live

Rolling coverage of the latest economic and financial news

8.52am GMT

The pound was the biggest mover in the foreign exchange market yesterday, as it rallied against other major currencies.

With fresh gains this morning, forecasts of a Conservative win next week are lifting the currency, explains Lee Hardman of Japanese bank MUFG:

With only a week to go until the UK election, the Tory party still hold a sizeable lead of around 10 percentage points over Labour. It has made market participants increasingly confident to price in a Tory majority and an end to the deadlock in parliament.

Boris Johnson set out his agenda yesterday for the first 100 days of a Conservative government. He pledged that legislation to implement his EU withdrawal agreement will be put back before parliament ahead of Christmas as he aims to take the UK out of the EU by the end of January. There are also plans for a February budget which would quickly implement plans to begin raising the threshold for paying national insurance tax.

8.29am GMT

Currency expert Kit Juckes of Societe Generale writes:

Sterling rallied on continued optimism about a Conservative win in the General Election and, as one wag put it, an absence of gaffes from Boris Johnson.

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