Pound Slips as Boris Johnson Bids for Further Election

Pound Slips as Boris Johnson Bids for Further Election

Previously, the British Pound declined further from recent multi-month highs.

Last Thursday, Prime Minister of U.K. Boris Johnson also stated he would ask Parliament to vote for a sudden General Election on Monday.

The voting would happen on December 12. Moreover, it will introduce renewed uncertainty into sterling’s prospect.

The administration anticipates an election. They said it is the only way of breaking the Parliamentary deadlock.

This week, it has also seen the way of Brexit law stalled in the House of Commons after MPs voted down the government’s timetable.

Delivery of the timetable should happen to Brexit by the October 31 deadline.

Leader of the House Jacob Rees-Mogg proved in the Parliament that Monday’s vote would be under the terms of the Fixed Term Parliament Act.

In addition, they stipulated that for the Parliament to be liquified, an election was needed.

A reach of a two-thirds majority is needed for this to happen.

Johnson Asks for Support on The Brexit Contract

Earlier today, Johnson wrote to the leader of the opposition Jeremy Corbyn.

He indicated that he would give Parliament more time to support his Brexit contract but that lawmakers must back a December election.

In addition, “This Parliament has refused to make decisions. It cannot refuse to let the voters replace it with a new parliament that can make decisions,” he said to Corbyn.

Meanwhile, a currency strategist with Nomura, Jordan Rochester, stated, “It’s now all about how Jeremy Corbyn will respond.”

He also added, “Given it will be a vote on Monday under FTPA, it will require two-thirds of the House (434MPs). Therefore Corbyn’s response to the key as it won’t pass unless he agrees.”

Previously, Johnson held a “political Cabinet” meeting at 10 Downing Street. That is where discussions about the government’s strategy on delivering Brexit. Additionally, the request for holding a snap General Election also took place.

The decision to call for an election recommends Johnson is anticipating the European Union to grant a Brexit extension on January 31 imminently.

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