Pound tumbles following Johnson's request to suspend Parliament
Pound tumbles following Johnson's request to suspend Parliament

It seems that the British Prime Minister does not care about the British pound at all. Boris Johnson takes more radical steps regarding the upcoming Brexit, paying no attention to the tumbling national currency. The new British Prime Minister has asked Queen Elizabeth II to suspend Parliament. This decision is sure to deprive parliamentarians of their right to block a no-deal Brexit. Johnson's fears are not groundless. He has to confront a lot of opponents in the Conservative Party, who stand against a possible no-deal withdrawal from the European Union.

Boris Johnson was confident that lawmakers would have "ample time" to debate Brexit before and after the critical summit of EU leaders in Brussels on October 17. The pound reacted negatively and lost more than 1 percent. Later, it partially recovered its losses. However, taking into account a combination of external factors, such a rebound cannot be called a reversal. It seemed to be a temporary phenomenon, just a result of inertia rather than real growth. The gloomy outlook for the pound was worsened by political uncertainty and low performance in the UK manufacturing sector. Given Johnson's actions, all these factors are set to knock out the sterling.

Published: 2019-09-05 05:40:34 UTC
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