The pound soared on hopes for Tory election wins after Nigel Farage says Brexit Party will stand down in some seats
- The pound is soaring after Nigel Farage, the leader of the Brexit Party, announced that his Brexit party won't contest the Conservatives in Conservative-held seats in the upcoming snap election.
- The pound jumped 0.9% to the dollar on the news at lunchtime in London.
- "A clear, decisive election win for the Conservatives will provide clarity on Brexit," says an analyst.
- View Business Insider's homepage for more stories.
The pound soared after Nigel Farage announced that his Brexit Party won't contest the Conservatives in Conservative-held seats in the upcoming snap election.
The pound jumped 0.9% against the dollar on the news at lunchtime in London, and 0.6% against the euro.
"The pound is stronger since a clear, decisive election win for the Conservatives will provide clarity on Brexit - anything else becomes messy," said Neil Wilson, chief markets analyst at Markets.com.
"Mr Farage and everyone else knew it would have been crazy politics for the Brexit Party to take Leave votes away from the Tories and enable a pro-Remain grouping to take seats," Wilson added.
It's a change of tack for Farage, the former UKIP leader. Previously, Farage said that his Brexit Party would contest every seat in the country, in order to ensure Britain leaves the EU.
Business Insider reported earlier that Farage said: "If we do field 600 candidates, there will be a hung Parliament," speaking in Hartlepool, northeast England. "That is by far the most likely outcome. And that's not something that people really want."
The Brexit Party, however, will stand in Labour-held seats that could be challenged by the Tory party in next month's election.
"This is a big boost to the Conservative Party as the Brexit Party had talked about fielding 600 candidates," Wilson said. "It changes the electoral map. Mr Farage seems to have been persuaded by Boris Johnson's commitment not to extend the transition period beyond December 2020."
For more on Farage's announcement and how it changes the dynamics of the election click here.
