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Sterling Plunges As PM Boris Johnson Plays Prorogue Card

Published 28/08/2019, 10:03
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Sterling suffering no-deal backlash

The pound is in freefall this morning after plans emerged to prorogue parliament and prevent MPs from passing legislation to prevent no deal.

This isn't the first we've heard of these dirty tactics but it was maybe hoped that such un-democratic measures would not be needed or used. Some may have thought them inevitable but perhaps not at this point in the process.

Either way, it certainly caught markets off-guard and came at a time when the pound had been recouping some of its losses. The FTSE, as ever, is the unintended beneficiary of the plunge in the currency, given that the vast majority of its earnings are generated outside of the UK.

Summer recess is now unofficially over and Brexit season is upon us. The next couple of months promises to be full of drama, boring parliamentary procedure and a few twists and turns along the way.

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