Commenting on Sterling’s reaction to the rejection of a vote on PM Johnson’s Brexit deal, Chris Towner, Director at JCRA, said: “Boris Johnson’s plan to get his meaningful vote on his deal with the EU through parliament has been thwarted by House of Commons speaker Bercow. His reasoning was that it would be repetitive and disorderly to do so. However, he did say that there is every opportunity for the government to have its way by the end of October.
“Sterling has been sold off from levels above 1.30 against the US dollar as Johnson’s plan to get Brexit done meets yet more obstacles. This frustration will weigh on Sterling but only to the extent that we have to wait for the timing of the inevitable vote. Sterling still looks like a compressed spring waiting for good news to lurch to another level higher.”