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Breaking News: Sterling Plunges After PM Johnson Suspends Parliament

Posted by Fullerton Markets on August 29, 2019 at 4:05 PM


Boris Johnson suspended Parliament until 14 October, reducing time MPs have to stop a no-deal Brexit. Brexit uncertainty will continue to weigh on pound. 

UK Prime Minister Boris Johnson sparks outrage after forcing the suspension of Parliament. This is months before the Brexit deadline of 31 October which means the time MPs have to pass laws to stop a no-deal Brexit would be cut.  

Furthermore, three Conservative members of the Queen’s Privy Council took the request to suspend Parliament on behalf of the prime minister. The suspension is now approved, allowing the government to suspend Parliament no earlier than 9 September and no later than 12 September, to take effect until 14 October when the Queen’s speech takes place. 

The MPs will likely attempt to prevent the suspension which could be followed by a no-confidence vote. PM Johnson’s move to suspend Parliament is highly controversial as it would stop MPs from playing their democratic role in the Brexit process. This would also allow PM Johnson to bypass the MPs who oppose his policy on Brexit.

Brexit uncertainties have heightened once again and this could continue to weigh on pound in weeks to come. GBP/JPY could fall towards the 128.00 price level.

 

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