PM Johnson’s request to prorogue Parliament accepted by Queen…
Sterling had a major wobble yesterday as Boris Johnson formally requested to prorogue Parliament, commencing the 12th September. The request was accepted by the Queen which means Parliament will be out of action between 12/09/19 to 14/10/19. This period of time is there for Johnson to create a fresh agenda for the new term.
In essence, the move creates a very small window of opportunity for anti-no-deal MPs to produce legislation to block this outcome. PM Johnson has taken another big step in creating a path for no-deal, hence sterling’s significant plunge lower. After the news first crossed wires in the morning, the pound dropped nearly 1.5 cents against the buck and 1 cent against the single currency. Some of the losses were trimmed by New York close but pressure will remain on the pound while this new development is still fresh in the minds of currency traders & dealers.
Today’s economic calendar is more interesting than yesterday’s. US 2nd reading of Q2 GDP will be the main highlight. However, we’ll also see notable releases from Europe where German unemployment, French GDP and Eurozone consumer confidence will all feature.
Written by Viv Savani. 9:21am, August 29th 2019
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