Sterling suffering no-deal backlash
The pound is in freefall this morning after plans emerged to prorogue parliament and prevent MPs from passing legislation to prevent no deal.
GBPUSD Daily Chart
This isn’t the first we’ve heard of these dirty tactics but it was maybe hoped that such un-democratic measures would not be needed or used. Some may have thought them inevitable but perhaps not at this point in the process.
Either way, it certainly caught markets off-guard and came at a time when the pound had been recouping some of its losses. The FTSE, as ever, is the unintended beneficiary of the plunge in the currency, given that the vast majority of its earnings are generated outside of the UK.
Source – Thomson Reuters Eikon
Summer recess is now unofficially over and Brexit season is upon us. The next couple of months promises to be full of drama, boring parliamentary procedure and a few twists and turns along the way.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.