Sterling tumbles sharply after BBC reported that Prime Minister Boris Johnson would ask the Queen to suspend parliament, in an attempt to stop blocking of no-deal Brexit. MPs are originally expected to return to work in September. But the new government want to tie it to Queen’s speech on or around October 14. Opposition MPs and Tory rebels will then be left with not enough time to pass any laws that could avert no-deal Brexit on October 31. Additionally, the UK would be in constitutional crisis as furious MPs would push for a vote to bring down the government.
GBP/USD’s sharp fall and break of 1.2208 minor support suggests that corrective rebound from 1.2014 has completed earlier than expected at 1.2309. Intraday bias is now back on the downside for retesting this 1.2014 low.
