2024-07-08 15:24:30 ET
Summary
- The U.K. Labour Party won a landslide victory over the Tories, causing the British pound to rally against the U.S. dollar.
- The rising popularity of Reform U.K. shows increasing political divisions in the U.K., impacting the outcome of the election.
- U.S. election uncertainty contrasts with U.K. political stability, affecting currency markets and potentially favoring an upside recovery for the pound.
- The Invesco CurrencyShares® British Pound Sterling Trust ETF tracks the British pound versus the U.S. dollar currency relationship.
On July 4, 1776, the United States was born, as the founders signed and adopted The Declaration of Independence. The U.S. became an independent country, severing political connections with Great Britain. Ironically, another, albeit smaller, political revolution occurred in the United Kingdom on July 4, 2024. After fourteen years in power, the conservative party, or Tories, lost control of the Parliament to the Labour Party. Keir Starmer, the Labour Party leader, took over as Prime Minister, replacing Rishi Sunak, who had served in the position since 2022 after he replaced conservative leader Liz Truss after a short stint in the position, and Boris Johnson, who served as Prime Minister from 2019-2022....
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FXB: Elections Have Consequences