UK Prime Minister Boris Johnson finally gained enough support for his Brexit deal last night, 22 October, winning a vote 329 to 299 on the second reading, helping Sterling push above $1.3000 and €1.1650.
But then Parliament failed to agree Johnson’s accelerated timetable, sending the Pound tumbling overnight to $1.2840 and €1.1546.
The concern for Sterling is when Brexit will actually happen, as a longer extension to the end of January 2020 is now the most likely outcome. This raises the chances of a general election in the UK in an attempt to end the Brexit impasse, which has been weighing on the Pound. Johnson must now wait to hear what delay the European Union is willing to offer .
Elsewhere, the top Ukraine diplomat in the US has testified that President Donald Trump made the release of military aid conditional on investigations into Joe Biden and his son. William Taylor, who served a US ambassador to the former Soviet state from 2006 to 2009 and came back on an interim basis as “charge d’affaires” in the Ukrainian embassy in July, testified to the congressional impeachment inquiry yesterday, and contradicted the president’s claim that he made no “quid pro quo” in holding back aid to Kiev.
Speaker Bercow delays vote on Brexit deal