Cable falls to a session low of 1.2072
Price continues to fall below near-term levels with support around 1.2065 being eyed next by sellers currently. Beyond that, further support is only seen closer to 1.2040-50 before a possible look at the 1.2000 handle once again.
As it stands, the political uncertainty in the UK is continuing to rear its ugly head as we are waiting on efforts by rebel/opposition lawmakers to be made official.
There are two major impediments currently faced by rebel/opposition lawmakers and that is of time and majority support.
It is almost a given now that they will request an emergency motion and likely debate a bill to be passed over the next two days in parliament that will push Boris Johnson to seek an extension to the Brexit deadline before 31 October.
If they manage to circumvent the time issue by seizing control of the Commons, there’s still the issue of finding enough votes to push Johnson to do so. Right now, Johnson is threatening to deselect Tory members who vote against him – which will reduce his working majority to a minority one if we do see that happening.
Well, when push comes to shove, if we end up in such a scenario, it wouldn’t be surprising to see this all end with a general election considering how divided and broken the UK political framework currently is.
In my view, it is either that happens or we’re headed for a no-deal Brexit. Essentially, it is a “pick your poison” kind of thing for the pound.