The pound fell from its six-week highs against the dollar today as PM Johnson continues with his pledge of taking Britain out of the EU by October 31st.
However, Johnson insists he will not seek an extension to the deadline, a decision that continues to cause havoc everywhere.
By a law passed this month, Johnson must ask the EU for a 3-month delay should a deal not be approved by the October 19th deadline.
However, by no surprise, Johnson said Brexit would continue, with or without a deal in place.
Britain’s Supreme Court will see the government argue that Johnson’s decision to suspend parliament was legal, while his opponents vote otherwise, suggesting that the suspension was an attempt to delay parliament from preventing a no-deal Brexit, in the short time that was left.
According to Commerzbank analysts:
The decisive question for the pound exchange rates remains whether or not a no-deal Brexit at the end of October is de facto off the agenda.
The pound fell by 0.25% hitting $1.2398 after it lost ground yesterday. It had jumped 1.3% last Friday due to a blown up idea that Johnson’s Northern Ireland allies were to soften their Brexit positioning.
However, the cable is also being afflicted by a volatile dollar, which rose late last night due to oil prices easing and trade tensions calming.
The pound fell 0.3% to 88.8 pence against the euro, having solidified a 3-month high yesterday.
Its one-week high came from a result of 2-month implied volatility, a possible general election, as well as a contract encompassing the Brexit deadline.