Sterling rose in European trade on Friday against a basket of major rivals, extending gains for the fourth straight session against the dollar and hitting three-week highs after a historic win by the UK labor party in general elections.
The Labor Party won by a landslide, removing the Conservatives from power for the first time in 14 years, and getting their second largest majority in history.
Current UK PM Richie Sunak admitted defeat, with Labor’s Keir Starmer becoming the next Prime Minister.
The Price
The GBP/USD rose 0.15% today to $1.2780, the highest since June 13, with a session-low at $1.2754.
The pound closed up 0.15% on Thursday against the dollar as the greenback sustained losses following weak US services data.
Historic Labor Win
The Labor Party won a historic win this week, coasting to an easy singular majority after years of conservative rule.
According to reported results, the Labor party will control 409 seats out of 650 Parliamentary seats, becoming the second largest ever Labor share in its history.
What Does the Landslide Mean?
A new Labor government hasn’t moved markets much so far but analysts expect British assets to become more attractive.
Investors will also likely welcome the stability brought upon by a single party rule for the next few years.
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