The British pound traded around $1.34 on Friday morning, after jumping more than 2% to its highest level since mid-2018 in the previous session as first UK election results showed the Conservative Party won a majority of 78 with 364 seats. Labour party secured only 203 seats, the SNP 48 seats, Liberal Democrats 11 seats and the DUP 8 seats. It is the best election result for the Tories since Margaret Thatcher in 1987. With such a victory for Boris Johnson, Brexit is set to be delivered on January 31st. Historically, the British Pound reached an all time high of 2.86 in December of 1957.
The British Pound is expected to trade at 1.28 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.26 in 12 months time.