Brexit Update – Boris Johnson Shocks the Pound

Johnson raises the stakes of a no-deal departure from the EU in an attempt to force the EU’s hands. It could back fire…
Bob Mason

The Latest

The European markets and Brussels saw first-hand in the early part of the European session Boris Johnson’s determination to deliver Brexit.

This morning, the British Prime Minister announced that he had requested for the queen to suspend Parliament on 10th September.

The very threat of a 5-week suspension of Parliament had become real once Johnson won the UK Leadership race.

Pro-Remainers had filed a motion in the Scottish courts in response to Johnson’s victory to block Johnson’s bid to suspend Parliament.

The motion was set to be heard on 6th September, leaving very little time for any appeals should the decision be in favor of the British PM.

Pro-Remainers are attempting to bring forward the hearing date to give more time, though there is no guarantee that the Scottish courts would go against any decision by the Queen to suspend Parliament.

Vote of no-Confidence

Boris Johnson’s latest move that turned a threat into reality could play into the hands of Labour Party leader Corbyn.

Over the summer recess, Corbyn has been busy mustering up support to force Johnson out of number 10 and to become the leader of a caretaker government.

The latest move now leaves Corbyn et al just 1-week to oust the British PM.

Updates from the Scottish courts, opposition party leaders and Tory rebels will be key in the coming days.

The Pound

At the time of writing, the Pound was down by 0.62% to $1.22119. While seeing heavy losses, the Pound recovered from a late morning low $1.2154.

Some support for the Pound kicked in on hopes of pro-Remainers blocking Johnson’s latest move.

We can expect volatility in the Pound to pick up in response to the news wires. Things will likely heat up further when MPs return to Parliament on 3rd September.

Of interest will be whether the EU responds to Johnson’s latest move. There have been no further discussions on the Irish backstop. Unless progress is made quickly, it will be down to the Pro-Remainers to prevent a no-deal departure from the EU.

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