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Yesterday, speaking from the Downing Street, the UK Prime Minister Theresa May called for a snap general election to be held on June 8th and the bill would be put into motion today at the House of Commons. In a little longer than 6 minutes speech she gave stability as her reason to call for an election. She made her position clear that Brexit is happening and it is irreversible. She expects the public to elect her as the Prime Minister with a stronger majority so that she can deliver a successful Brexit and can defy opponents like Labor Party and the Scottish National Party (SNP), who according to her are acting against the will of the people. She said that people are coming together despite differences in Brexit referendum but the Westminster is not. She wants the people to deliver a strong message through the upcoming vote. In addition to that, an election could cement Ms. May’s position as the Prime Minister as she was elected as a replacement to the resigned Prime minister David Cameron, who resigned after the referendum last year.
The main opposition Labor Party leader Jeremy Corbyn welcomed the proposal as it would help him too even if the Labor Party loses the election to the conservatives. Currently, there are revolts happening within the party and an election could help Mr. Corbyn to make his supporters get elected.
The financial market is cheered by the idea that an election as it could not only reduce the divisions among lawmakers but deliver a longer-term stable government. Under the current scenario, the UK must have an election by 2020, which coincides with the Brexit’s two-year timeline. The June election could deliver a stable government until 2022.
The pound bulls loved the proposal and pushed the pound to as high as 1.29 against the dollar. The pound is currently trading at 1.284 against the dollar, which is the highest level since October last year.
