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Pound drops on reports The British government suspended Parliament



Boris Johnson speaks after being announced as the next British Prime Minister at the Queen Elizabeth II Center in London, UK on July 23, 2019.

Toby Melville | Reuters

sterling fell 1% against the dollar on Wednesday morning after British Prime Minister Boris Johnson announced plans to reopen Parliament's formal reopening on 14 October – a highly controversial move limiting parliamentary time before the deadline According to initial reports, Johnson confirmed in a speech that Parliament would be suspended days after the return of MPs from their summer break and would return only to the Queen to deliver a speech on the government's plans after Brexit on October 1

4th.

This speech is the formal reopening of Parliament. The date of 14 October would result in a delay in parliamentary business and shorten the deadline before 31 October. The opposition parties announced on Tuesday their intention to merge into a law that prevents Johnson from enforcing a Brexit without agreement, which, according to several predictions, could harm the British economy, and has therefore met with broad opposition in the House of Commons.

Johnson's move on Wednesday is viewed by the government as an attempt to suppress the creation of this law and force by Brexit with or without a deal. This is one of the British leader's most important promises of power.

However, Johnson said in his speech on Wednesday The legislature will have plenty of time to debate about Brexit, and it is wrong that he is trying to get rid of Parliament on this issue.

Parliament will return next week and will meet until September 9 weeks during a season of political party conferences. Johnson's move effectively extends the break by explaining a queen's speech to five weeks.

The speech of a queen, a norm, when a new government takes power in the UK also requires five days of debate. This makes it difficult for Members to apply the legislation, as there would be no room left on the parliamentary agenda.

Johnson is seeking to reach a renewed deal with Brussels before the deadline, but the two sides agree on the issue of Irish backstop to maintain a seamless border on the island of Ireland.

Broad rejection

Opposition party leaders and MPs have expressed widespread opposition to the move. Nicola Sturgeon, chairman of the Scottish National Party and first minister of Scotland, urged his colleagues to thwart Johnson.

Tom Watson, Vice-Chairman of the Labor Party of the Opposition, called the suspension a "scandalous attack" on democracy.

Tom Brake, Brexit spokesman for the Liberal Democrat Party for the EU, called it a "declaration of war".

Jordan Rochester, FX strategist at Nomura, said in a note that the suspension was not "as bad" as that of the interim parliament It's about time that MPs thought in October to be a no-deal exit to block, completely shortened.

"For GBP to regain the case this morning, rebels' deputies have to band together against No Deal in the first week of September – no more delay," the note said.

Rochester added that the fall of GBP is unlikely to penetrate a new trend, "Parliament must not bring forward its plans to stop a no-deal until next week," and said the market is already betting strongly against the currency.


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