Pound slips as UK leaves BoJo deal aside and votes to delay Brexit

The pound fell to 1.2875 against the US dollar, as British lawmakers voted to ask for a delay on the Brexit deadline on Saturday rather than voting on the Brexit deal that Boris Johnson put on the table.

As a result, a letter was sent to EUs Donald Tusk asking for another delay in the Brexit deadline, even though Boris Johnson refused to put his signature on that letter. Tusk said he will now start consulting EU leaders on how to react. On this front, some EU leaders including French President Emanuel Macron could refuse further elongating the negotiations, but the UK will certainly be given that additional time to continue discussing what to do a few more months and the possibility to leave the union in November, December or January. The Times reported that if the UK calls for another Brexit referendum, the new deadline could even be stretched to June 2020. Hence, the Brexit headache may not be over just yet.

Still, it is said that Johnson will ask Parliament to back his deal again on Monday. But he could be refused to do so, because asking the same question twice in the same session would go against parliamentary rules. In case of a vote, some policymakers are confident that Johnson has enough support to pass his deal through Parliament and make the Brexit happen by the end of this month.

So far, pound traders are content that a disorderly Brexit will likely be avoided in two weeks.

Read the full LCG article

https://www.lcg.com/int/analysis-education/market-reports/articles/pound-slips-as-uk-leaves-bojo-s-deal-aside-and-votes-to-delay-brexit/

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