As Britain’s Queen Elizabeth gave the nod to Prime Minister Boris Johnson’s plan to suspend parliament, no-deal fears raise. The move limits the time Johnson’s opponents have to prevent a disorderly Brexit.
Johnson rejected accusations he was seeking to prevent parliament from obstructing his Brexit plans. But the move will curtail the time available to lawmakers who want to prevent Britain from crashing out of the EU without an exit agreement.
The pound fell again on Thursday, a day after Johnson suspended parliament for more than a month. Actually is a move to dodge a possible no-confidence vote and take Britain out of the European Union on the Oct. 31 deadline.
The queen must approve the suspension. House of Commons Leader said on Thursday she did not question the government’s request to suspend parliament.
Johnson says he wants to renegotiate the terms of Britain’s exit from the EU. But he also says he’s willing to take the country out of the bloc in October without a deal.
Parliament re-opens for business on Sept. 3 but will be prorogued — suspended — the following week until Oct. 14.
Sterling was down 0.1% at $1.2196 and down 0.2% against the euro at 90.835 pence. The pound fell on Wednesday to a six-day low against the dollar and the euro. But the decline was moderate because most investors already thought a no-deal Brexit was the most likely outcome.
Traders are bracing for more big price swings in the pound between now and the expected Oct. 31 Brexit date.
START TRADINGForex – No-deal fears grow on UK parliament suspension
Risk appetite remained on the back foot with investors skeptical on the prospect of a trade-war breakthrough any time soon.
The dollar firmed broadly against its rivals. China said it won’t immediately retaliate against the latest round of tariff increases by the United States. Against a basket of currencies, the dollar rose slightly to 98.29.
The Japanese Yen edged higher on Thursday, heading for its biggest monthly rise since May. Against the greenback, the yen edged 0.2% higher at 105.83 yen.
The kiwi was off 0.3% at $0.6318, after touching its lowest since September 2015 at $0.6311..
In commodities, oil prices Brent oil held above $60 a barrel on Thursday. Oil withstood pressure from concerns about economic growth, while a sharp fall in U.S. inventories boosted WTI crude futures.
International benchmark Brent crude was up 2 cents at $60.51 a barrel by 1215 GMT. WTI was up 48 cents at $56.26 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money