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GBP / USD Analysis and discussion points
- Instant election seems Inevitable, GBP / USD slammed
- GBP / USD en route to 1.2000
An instant election seems inevitable, the GBP / USD slammed
The GBP / USD pair continued to slide throughout today's session, seeking to test the 2019 low at 1.2015, an instant election seemingly inevitable. Following Boris Johnsons' decision to suspend Parliament from mid-September to 14 Octoberth, rebel deputies worked overtime to avoid a Brexit without agreement. In turn, the rebel deputies seek to introduce a bill that would oblige the prime minister to obtain a three-month extension from the EU, provided that there is no new agreement by 19 October.th.
Therefore, if the Conservative rebels manage to overthrow the government and pass the bill tomorrow, the British prime minister could call for early elections on Wednesday, which could also allow the holding of elections Thursday, October 10th.th, before the key EU summit of 17 Octoberth. As a reminder, under the Fixed-Term Parliaments Act, the Prime Minister would need 2/3 of all MPs (287/434) to vote in favor of an election, which, with the parties Opposition favorable to a general election, should be achieved with ease.
Source: Press Association.
GBP / USD en route to 1.2000
Given the political uncertainty, any rise in the GBP / USD has presented opportunities for extinction. At the same time as the deputies who return to Parliament from September 3rdrd, the implied volatility of the pound sterling continues to grow, with the two-month-olds reaching their highest level since December 2018.
— Written by Justin McQueen, Market Analyst
To contact Justin, write to [email protected]
Follow Justin on Twitter @JMcQueenFX
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