Home / UK / Sterling falls as Boris Johnson moves to suspend parliament, making a no-deal Brexit more likely – CNBC

Sterling falls as Boris Johnson moves to suspend parliament, making a no-deal Brexit more likely – CNBC

Opposing party leaders and MPs have voiced widespread disapproval with the move. Scottish National Party leader and First Minister of Scotland, Nicola Sturgeon urged colleagues to try to thwart Johnson.

Tom Watson, deputy leader of the main opposition Labour party, called the suspension a “scandalous affront” to democracy.

Tom Brake, Brexit spokesperson for the pro-EU Liberal Democrat party, called it a “declaration of war.”

Jordan Rochester, FX Strategist at Nomura, said in a note that while the suspension is not “as bad” as proroguing parliament completely, it has reduced the time MPs thought they had in October to block a no-deal exit.

“For GBP to recover the fall this morning rebel anti-no deal MPs will have to get their acts together in the first weeks of September. No more delaying,” the note added.

Rochester added that the fall in GBP is unlikely to extend into a new trend as “parliament is not completely prorogued just has to bring forward their plans to stop a no deal to next week,” and said the market is already betting heavily against the currency.

Chris Whitehouse, chairman and managing director of political communications firm Whitehouse Consulting, told CNBC via phone Wednesday that opposing politicians were “posturing,” adding that scheduling a queen’s speech was routine for a new government.

“Boris Johnson had no control whatsoever over the timing of Theresa May’s resignation and the election of himself as the Conservative party leader, and the decision of Her Majesty to ask him to form a government,” he said.

“It is, however, incumbent upon him to set out Her Majesty’s government’s plans for his term as Prime Minister, and to do so as promptly as reasonably possible after taking that position, and that is precisely what he is doing — no more, no less.”

Sterling falls as Boris Johnson moves to suspend parliament, making a no-deal Brexit more likely – CNBC

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