With British MPs now in control of Parliament’s schedule, the House of Commons is set to exchange of views and vote on a motion during tomorrow’s session aiming to delay the October 31 Brexit deadline. The move comes in response to last week’s Brexit development when PM Boris Johnson received approval from the Queen to suspend Parliament, which was believed to set up a no-deal departure from the EU amid ongoing gridlock.
Following today’s results, PM Boris Johnson stated that “Parliament is on the edge of wrecking any Brexit deal,” adding that he will call for a general election if Parliament votes to delay Brexit on Wednesday. On the other side of the isle, Labour Party leader Jeremy Corbyn stated that he welcomed tonight’s vote and will support a vote to call a general election contingent on no-deal Brexit being taken off the table.
As importance of today’s vote in British Parliament, GBPUSD sank below the 1.2000 price level – its weakest since January 2017.
The Pound Sterling may continue to going down recent lows as the probability of no-deal Brexit recedes. However, embarking down the path toward another general election may simply stem the accursed for now. That said, remaining political uncertainty looks to continue weighing negatively on the UK economy and British Pound. Although, if MPs fail to pass their last-ditch effort on preventing no-deal Brexit on Wednesday, PM Boris Johnson may get his way and steer the UK closer toward departing the EU on October 31.