The pound goes down after electoral speculation

The pound sterling continued to fall on the currency markets in a climate of heightened political uncertainty about Brexit.

Information on a possible early general election weighed on the pound sterling, while MEPs rallied to demand a further three-month extension of Brexit.

Against the dollar, it dropped more than one cent to 1.2050 dollar, while against the euro it fell below the 1.10 euro mark.

Prime Minister Boris Johnson has repeatedly insisted that the UK was ready to leave the EU without an agreement.

The Brexit is scheduled for October 31st.

Book v dollar

Under Johnson, the government has hardened its position on a Brexit without agreement, which he says is "now a very real prospect".

The pound was trading around 1.50 US dollar against the dollar before the EU referendum in June 2016.

Jane Foley, chief currency strategist at Rabobank, said the markets doubted that efforts to end a hopeless Brexit would lead to failure following news that conservative MPs defying M's plans Johnson could lose the whip.

Rumors of a general election have probably worsened the situation, she said.

"Foreign exchange markets do not generally appreciate political uncertainty," she added. "What would appease investors, is if legislation preventing the conclusion of an agreement was passed".

Book v Euro

Johnson plans to engage in early general elections if MPs who want to block a Brexit without a bargain defeat the government this week.

Political editor Laura Kuenssberg said it could happen as early as Wednesday, but no final decision has been made.

At the same time, a multi-party group of deputies is expected to present Tuesday a bill banning any agreement under "SO 24" or Article 24 of the Rules – the rule allowing MPs to request a debate on a " specific and important issue that should be urgent ". consideration".

Sources told the BBC that the bill would oblige the prime minister to request a three-month extension until January 31 if no withdrawal agreement was passed by parliament before October 19 – the day after the next summit of European leaders.