Prime Minister Boris Johnson has achieved the next milestone in having the Brexit deal approved in the United Kingdom’s (UK) Parliament. Johnson announced late on Sunday that all candidates of the Conservative Party have finally been brought onboard. The candidates have pledged to vote in favor of Johnson’s Brexit deal in the general election set for December 12th.
There is a total of 635 Conservative candidates running in the December 12th election. According to Johnson, if elected, all of the candidates have pledged their support for his Brexit deal that significantly improves the chances of Parliament’s approval and a graceful departure of the UK from the European Union. UK’s Prime Minister addressed the nation directly and commented that peoples’ votes for the Conservative party will ensure Parliament’s approval and the Brexit drama to finally come to an end.
Johnson’s Comment On Tax Policy
Johnson also commented on the tax policy in his address on Sunday. He was confident that tax cuts will help a great deal in uplifting the UK’s economy in the long run. However, he further remarked that the 40% tax rate threshold will not be increased as long as the burden is not shifted from the low-income groups.
Prime Minister Boris Johnson had previously aimed at getting Brexit done by October 31st. While he has already missed the deadline, the recent events highlight that he is on the right track to ensuring the UK’s departure by the next allotted deadline of January 2020.
It has been three years since the events of Brexit were put into motion following the referendum of 2016 in which the nation voted slightly in favor of leaving the EU. Originally set for March 2019, Brexit has been delayed three times so far with the current deadline of January 31st, 2020.
Forex Market Response
The Forex market has responded rather generously to Johnson’s recent announcement. Sterling has been under pressure in the past couple of weeks with GBP/USD printing a low of around 1.28. Following the Prime Minister’s statement that all Conservative candidates are onboard, Cable was reported to have noted a gain of around 0.3% and was seen trading above 1.29 again. The pair is currently trading at around 1.2955.
As per the technical analysts, if the events remain positive, further upside can be expected in GBP/USD in this week. Strong resistance is currently located at 1.30 level. If Cable manages to break above this psychological resistance, 1.31 is in sight as the next immediate target.