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

Rathbones brings together responsible investment in Centre of Excellence

Rathbones brings together responsible investment in Centre of Excellence

Combines ethical and sustainable research capabilities

Patrick Brusnahan
clock 29 May 2026 • 1 min read
Why active management matters more for income investors

Why active management matters more for income investors

Significant implications for advisers and investors relying on passive income strategies

Rory Sandilands
clock 29 May 2026 • 4 min read
Can the energy crisis power renewables past their headwinds?

Can the energy crisis power renewables past their headwinds?

Renewables continue to see headwinds

Ian Aylward
clock 28 May 2026 • 3 min read