Sterling dives as fears of no-deal Brexit grow

Sterling dives as fears of no-deal Brexit grow

Sterling dived as concerns rose that the United Kingdom may be headed for a disruptive no-deal Brexit after Prime Minister Boris Johnson moved to restrict parliamentary time before October 31.

Mr Johnson said he would schedule a Queen’s Speech for October 14 in order to launch new legislation. He denied he was seeking to prevent parliament from obstructing his Brexit plans.

The move limits the amount of parliamentary time available to lawmakers who want to prevent him taking the country out of the EU without an exit deal.

The pound, already trading lower on the day, extended its drop to hit $1.2156, a six-day low, and was last down 0.7% on the day.

Against the euro the British currency also weakened to 91.265 pence, its lowest in nearly a week, trading last down by 0.7% at 90.89 pence.

“For the pound to recover the fall this morning, anti-no deal MPs will have to get their acts together in the first weeks of September,” Jordan Rochester, a strategist at Nomura said, raising the odds of a no deal Brexit to 44% vs 40% earlier.

The latest move from Johnson comes a day after lawmakers who are opposed to a no-deal Brexit met to discuss ways they could use parliamentary procedure to force Johnson to seek a delay to Brexit.

Sterling had rallied in recent days on hopes that Britain’s opposition parties can stop a no-deal Brexit.

On Tuesday, it hit a one-month high against the dollar and the euro.

Johnson has said the UK is leaving the European Union with or without a deal on October 31, and media have previously reported that he wants to suspend parliament to help force through an exit.

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