Pound Tumbles After Parliament Rejects Move To Block No-Deal Brexit

After several weeks in which headlines from the endless farce that is Brexit were mercifully absent around the flux surrounding Theresa May’s resignation, we have some bad news: Brexit is back… and with a vengeance because moments ago cable, which had been rising gingerly in recent days, plunged after the House of Commons voted by 309 votes to 298 to reject a motion blocking a no-deal Brexit (something it had voted the opposite way on just a few weeks ago), or specifically to take control of the parliamentary agenda on June 25 to allow time to pass legislation blocking a no-deal divorce from the EU.

The motion, proposed by the Labor Party and backed by other opposition parties and some rebel Tory MPs, was opposed by the government (even if it remains unclear who will lead said government).

The Labour party said the bill was necessary to stop a new prime minister from taking Britain out of the European Union without parliament’s consent when the latest EU deadline expires on Oct 31.

Pound tumbled immediatly on this, sliding as much as 0.3% to 1.2688, with Mizuho’s head of hedge-fund currency sales Neil Jones, saying that “the pound should go down more than this,” says as Parliament is “unable to obtain control to block a no-deal Brexit now.”

“If it can’t be done now with potential hardline Brexiteers on the verge of taking over the PM helm, then the market will have doubts it can be done at all. The pound is being sold off on this basis” Jones said.

Earlier in the session, the UK’s most likely next PM, Boris Johnson, said he doesn’t want a no-deal Brexit but the country must prepare for one as a negotiating tactic. Dialing down his earlier rhetoric, the favorite to replace Theresa May said he wants a “sensible, orderly” divorce. But he vowed to leave the bloc on Oct. 31 – a target Chancellor of the Exchequer Philip Hammond said was impossible.

Then, after the vote, BoJo calmed members of Parliament, saying he wouldn’t want to suspend the House of Commons to push through a no-deal Brexit, according to a lawmaker at the hustings on Wednesday, although considering the total chaos that is Brexit, expect that and much more to happen in the coming months.

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Author: Tyler Durden

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