Brexit Update – Brexit and Political Chatter Keeps the Pound on the RopesThe Pound is on the back foot once more as Brexit and political chatter weighs early. It’s going to be a choppy week ahead…
If Labour Party leader Jeremy Corbyn thought he was free from the pressures of Brexit and in Party fighting, the weekend and the start of the week proved otherwise.
It’s ultimately the flip-flopping stance on Brexit that has left Corbyn in a difficult position as the Brexit clock ticks.
Corbyn has shifted his Brexit stance to neutral in a bid to prize power away from the Tories. This comes after having leaned in favor of remaining in recent weeks.
Like Cameron, May and now Boris Johnson have learned, the hard way, there’s no such thing as party alignment on Brexit. Having the conviction of an unmalleable stance will continue to be a key attribute until the Brexit process is completed or reversed.
Corbyn has now decided to stay neutral on Brexit, perhaps a stance that the Labour Party leader should have taken from the outset.
The Labour Party annual conference is expected to decide the Party’s strategy on Brexit.
News of the Unions shifting to favor a remain motion suggests that Corbyn could be facing the exit door.
For a Party looking to oust the Tories come 31st October, assuming that Brexit is delayed, Corbyn’s removal would also give the Labour Party a stronger chance of forming an interim government to manage the Brexit process.
In the last few weeks, political party leaders have been clear. While they support the notion of an interim government, they would not support Corbyn as the leader.
At the time of writing, the Pound was down by 0.4% to $1.24213. There’s plenty of uncertainty at the start of the week. The outcome of the Labour Party conference vote is first up. Then there is the Supreme Court’s ruling on the suspension of Parliament. Both have pinned the Pound back through the morning.
What Lies Ahead?
It’s a busy start to the week for British politics and the Pound.
The Labour Party will vote on its Brexit stance today. The outcome could ultimately decide the fate of Corbyn as the party leader.
Should the Labour Party follow the Tory Party down the Brexit rabbit hole, the chances of the Labour Party moving into number 10 would likely diminish
Some may argue that a leader with a neutral Brexit stance would suit both sides of the Party line. The electorate would, however, need representation on their position on Brexit. A neutral leader could become the Labour Party’s Achilles heel.
There is also the Supreme Court ruling on whether the suspension of Parliament was lawful.
The Supreme Court will deliver it’s ruling in the early part of the week. If Johnson’s track record is anything to go by, the Speaker of the House could be calling MPs back before the week is out.
The ruling will almost certainly influence the Pound as will news from the EU. Johnson will be at the UN General Assembly this week, where there will be more discussions over the Irish backstop.
From a Pound perspective, updates from the EU on the Irish backstop will have the greatest influence.
Johnson has 6-days remaining to deliver a viable alternative. Failure and a Supreme Court ruling against the PM would certainly hurt…