Investing.com - A U.K. December election looked increasingly likely as leader of the opposition Labour Party Jeremy Corbyn signalled his party's support for a general election.
Parliament is expected to vote on a bill later on Tuesday on whether to hold a December general election.
Jeremy Corbyn told his shadow Cabinet on Tuesday morning that he would support an election now that a 'no deal Brexit' was off the table following the EU's official confirmation of a Brexit extension until Jan. 31.
"We have now heard from the EU that the extension of article 50 to Jan. 31 has been confirmed, so for the next three months, our condition of taking no deal off the table has now been met." He said the Labour Party would launch "the most ambitious and radical campaign for real change the country has ever seen" Corbyn said.
Parliament refused Prime Minister Johnson's third demand for an election on Monday evening.
Johnson told parliament directly following his defeat that he would try to push through a bill for a general election. The government is expected to try to pass the bill on Tuesday and will only need a simple majority.
The one-line bill to change the date in law for an election can see MPs table motions for amendments to the bill. Amendments could include lowering the voting age to 16 or allowing votes for EU citizens living in the U.K.
Both the Scottish National Party and Liberal Democrats said over the weekend they would back a Dec. 9 election.
Jacob Rees-Mogg told the House of Commons that legislation to enact the Brexit deal has been put on hold pending an election.
Britain voted to leave the European Union over three years ago and it is still unclear on what terms it will leave the bloc. Some MPs view an election as the only way to break the Brexit impasse.
At 11:50 GMT GBP/USD was flat at 1.2866, while EUR/GBP was down 0.12% to 0.8615.