The British Pound Sterling is still on the rise on Friday, continuing the trend for the day when the Labour Party won the national election of the UK. The party got 410 seats in parliament and won the election. The concession of defeat by PM Rishi Sunak suggested that the governmental powers have shifted.

Regarding the currency, Sterling has increased nearly 0.13% against the US dollar and was at the level of $ 1.2775. On the other hand, there has been an insignificant change against the euro and is situated at around 84.72 p. Sterling began to rise at the end of May when Prime Minister Sunak announced general elections. So far, the pound has grown by 0.5% against the dollar in 2024 but that might be the beginning of a rise.

Moreover, the election results were predictable. According to polls, Labour was ahead by more than 20% for several weeks before the election. Due to the fact that this was already anticipated, the reaction of Sterling was not as drastic as some could have expected when the election results were announced on Thursday night and Friday morning.

Parity of Pound for Dollar is now in the rear mirror, which was last seen in 2016 before the Brexit vote. This trend suggests that many players in this market have expectations from the new government policies that may add to strength of GBP from various factors.

In other words, it reflects the end of the period of uncertainty that has lasted throughout the government term of the Conservative Party. Traders and investors may now believe that the situation will settle down. Moreover, after the Labour Party has become the new government, the preferences of the market and calls to the government to adjust policies to stabilize the economy have become evident. Thus, it can be anticipated that there may be changes in the economic policies of the Labour Party during the following weeks.