The Conservative Party won the majority seats in the 2019 election with an overwhelming advantage. In this election, there is only one point which is the topic of Brexit. Johnson was elected to indicate that he will be authorize to complete the Brexit mission and is expected to complete Brexit done on time by the 31st of January 2020, "No ifs, no but, no maybes." By Boris Johnson.
In this election, the Conservative Party advocates that the purpose of Brexit is not to be constrained by the European Union, but to revitalize the British economy and trade, improve people's lives, and revitalize Britain's international status. Ensuring the development of the economy in the national interest and carrying forward traditionally conservative and liberal ideas, including democracy and human rights. Also hope to continue its unique position within Europe and play a unique role in international issues.
But does the end of the election represent a bright future for Britain?
“In 2020, Britain will be divided, damaged and diminished.
Despite Boris Johnson's landslide victory, Brexit will still suck the country's political lifeblood like a giant squid” by The Economist.
Issues after UK General Election:
The UK economy is not only facing the threat of Brexit uncertainty, the UK economy is slowing. In its December policy statement, the Bank of England lowered its quarterly growth forecast in the final three months of 2019 from 0.2% to 0.1%. Britain must negotiate with the European club to determine its precise relationship. However, the contradictions and differences in the negotiation of the agreement are not nearly that simple, so the argument of Brexit will continue. Moreover, Britain may loses its role as a bridge between America and Europe, and then China will increases its power in the emerging world.
British Pound Trend
In mid-October, after Johnson announced a new Brexit agreement with the European Union, the British Pound continued to rise until mid-December. Sterling soared up to 2.7% on the 12th, optimism was good for the pound and raised the currency pair above 1.3500. However, after the election, the situation returned to the reality, people were again worried about the impact of no-deal Brexit. The appreciation of Sterling is short-lived. Uncertainty of Brexit still exist, and pound drop from a high of 1.3500 to 1.2900 the next day after the election. Modest weakness in the US dollar may further limit the downside, extend some support.
The global economic growth has slowed down, and during the transition period of hard Brexit, the Bank of England may choose monetary easing to support the economy earlier in 2020. When the Brexit is completely clear and the future is become more certain, the British economy will have the opportunity to bottom out and the pound will appreciate. Therefore, British Pound may continue to fall on hard Brexit deadline in 2020. Be cautious and keep an eye on Brexit.