The Pound takes a Pounding as Hard Brexit Looms

The Pound Sterling took a sharp drop after UK Prime Minister Boris Johnson‘s prorogation of parliament. The move to suspend parliament is being interpreted as a move to disarm oppositions of a No Deal Brexit, heightening the probability of Brexit this Halloween, deal or no deal.

 

Boris Johnson has vowed for the consummation of the UK’s divorce from the EU to happen this October 31st. His move to suspend parliament, dubbed as a “masterstroke” by UK tabloid The Sun, is being seen as an attempt to prevent opposition members of parliament from blocking the official departure of Britain from the European Union.

The prorogation of Britain’s parliament this coming September 10th will mean that the MPs that are against a No Deal Brexit, and those whom are against Brexit altogether will essentially have only a week to come up with a legislative aegis to block, and further delay Brexit.

 

Though parliamentary recess is part of the rudimentary process of the legislation proceedings, Boris’s prorogue is unusually long. According to the Independent, parliament hasn’t been suspended for as long as five weeks since the 1940s. And particularly the timing of the extra elongated suspension is what’s causing the outcry.

Time reports that Johnson’s opponents have accused him of proroguing parliament in order to make a “No Deal” Brexit more likely. The increased probability of an exit with no damage control agreements between Britain and the EU has pushed the Pound off a steep cliff. On Wednesday when news that Boris was going to the queen with the extended prorogue, the Pound dove.

“The sterling closed at €1.1058 last night, dropping below €1.10 following reports this morning that the House of Commons would be prorogued from September.” The Journal reported on Wednesday.

The Brexit series seems to be close to its finale, however the question still remains, will it be a hard one or a soft one. And how hard will it be for the people of Britain to adapt if it comes to leaving the EU with no deal set in place.

 

However, if faced with the probability of a Hard exit, political analysts have suggested that May’s previous proposal might be brought back from the grave. While others claim a No-Confidence vote to oust Boris as prime minister might be the solution.

This is what Trump has to say about the possibility of a No-Confidence vote against Boris Johnson:

“Would be very hard for Jeremy Corbyn, the leader of Britain’s Labour Party, to seek a no-confidence vote against New Prime Minister Boris Johnson, especially in light of the fact that Boris is exactly what the U.K. has been looking for, & will prove to be “a great one!” Love U.K.”

It seems the US president sure does have a lot of confidence in Boris, and would most likely come to Britain’s aid with significant bilateral agreements if a Hard Brexit comes this Halloween.