UK General Election speculation as Brexit battle heats up
The British Prime Minister Boris Johnson may push for an early general election if MPs looking to block a no-deal Brexit defeat his government this week.
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?
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
- The unique opportunities in a ‘hard’ and ‘soft’ Brexit
- The markets you should be watching
- Everything that’s happened so far
Live prices on most popular markets
- Forex
- Shares
- Indices
