Pound falls as chances of a Brexit deal seem more unlikely | Capital Connection
CNBC’s Willem Marx reports.
Pound falls on reports of parliamentary suspension
The pound sterling fell 1% against the dollar on Wednesday morning after it became known that British Prime Minister Boris Johnson will ask the Queen to suspend parliament in an attempt to force the UK to leave the European Union on October 31.
The pound, which was already trading lower during the day, continues to fall to $ 1.2220.
Against the euro, the British currency also weakened 0.6% to 90.81 pence.
Pound has strengthened in recent days in hopes that British opposition parties can stop Brexit without a deal.
British Prime Minister Boris Johnson said Britain will leave the European Union with or without an agreement on October 31.
Media previously reported that he wants to suspend parliament a few days after MPs return from summer vacation and do not have time to pass any laws preventing Brexit.
Johnson is seeking a new agreement with Brussels before the deadline, but both sides face an unresolved border issue on the island of Ireland.
Opposition parties on Tuesday made it clear they intend to team up to create a law that would prohibit Johnson from pushing Brexit without a deal, as it could cause irreparable damage to the UK economy..
Accelerated Parliamentary Suspension Times May Undermine the Efforts of a Cross-Party Group of Parliamentarians to Enact Legislation Blocking the Brexit Scenario Absent Deal.