Cable jumps to a high of 1.2083 as the pound spikes after Brexit rebel/opposition lawmakers apply for emergency debate
- UK House of Commons confirms that application for emergency Brexit debate has been submitted
Expect more pops like the ones we’re seeing above to come if there are any headlines pertaining to the Brexit motion above. The next one to watch is whether or not speaker John Bercow will approve of the motion.
He is pretty much guaranteed to do so and that shouldn’t be a surprise but as mentioned here, markets are still likely to move on it like they did on the headline above – even though it was also expected to happen.
There’s no doubt that sellers will fade the headlines because it offers nothing new but the more we see rebel/opposition lawmakers get closer to upset Boris Johnson, the more traction the pound will gain to the upside in the mean time.
I wouldn’t be surprised if we ended the day higher for the pound before the election motion gets put into place and then we start seeing risks of that weigh on the currency over time as the UK heads to the polls – likely on 14 October.