Sterling spikes on Conservative majority

Landslide win for Tories

clock • 1 min read

The pound surged against both the US dollar and euro after the Conservatives won a landslide majority at the UK General Election on Thursday (12 December).

Sterling jumped almost 3% to touch 1.3514 against the US dollar, a 19-month high, as markets celebrated the defeat of Jeremy Corbyn's Labour party. Against the euro, sterling hit a high not seen since the referendum vote back in June 2016, at 1.2078 - a rise of around 2.5%. Richard Buxton, head of UK equities at Merian Global Investors, said the pound's initial reaction was "a little more muted than might have been expected". However, he added, the breaching of 1.20 against the euro "feels significant, and I would not be surprised to see sterling strengthen further from here". Buxton ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why the bull market in precious metals may be starting again

Why the bull market in precious metals may be starting again

Silver and gold again – who would have thought it?

Paul Wood
clock 20 May 2026 • 2 min read
Omnis Investments launches passive range for Openwork and 2plan advisers

Omnis Investments launches passive range for Openwork and 2plan advisers

L&G to run day-to-day investment management

Patrick Brusnahan
clock 19 May 2026 • 2 min read
Digital bank Zopa gains targeted support authorisation

Digital bank Zopa gains targeted support authorisation

Receives regulatory approval for investment products

Sophia Panayi
clock 19 May 2026 • 1 min read