UK General Election speculation as Brexit battle heats up

According to reports, the UK Prime Minster Boris Johnson is considering holding an early general election if British lawmakers looking to block a no-deal Brexit defeat his government this week.

If a snap general election is called, it is likely to damage the UK economy further and is unlikely to provide any clarity on Brexit.

‘Anyone who thinks that an election will solve the UK’s political crisis has not been paying attention over the past three years,’ IG Chief Market Analyst Chris Beauchamp said.

General election speculation sends pound lower

Growing speculation of a snap general election helped send sterling lower against the dollar and the euro, with investors grow increasingly concerned about further Brexit-related chaos in the build up to the October 31 deadline.

The pound fell below $1.21 against the dollar and slid under €1.10 against the euro on Monday.

Brexit: The path ahead remains unclear

Stephen Booth from Open Europe told IGTV that while the legal position is that the UK will leave the EU at midnight on 31 October, in reality there is still a myriad of possible outcomes.

Booth explained that blocking a no-deal Brexit is likely to be done by British lawmakers ‘taking control’ of the legislature and effectively force the government to request an extension of Article 50 from the EU.

However, Booth says, the question is do MPs have enough support and time to get this done, and will the EU give parliament the extension that it seeks?