He said: “If parliament refuses to allow Brexit to happen and instead gets its way and decides to delay everything until January or possibly longer, in no circumstances can the government continue with this. And with great regret, I must say the bill will have to be pulled and we will have to go forward to a general election.”
The GBP/EUR exchange rate remained subdued on fears that Brexit could once again be delayed until next year, extending the UK’s political uncertainties.
If Boris Johnson secures a majority for his accelerated timetable, however, we could see Sterling surge as no deal will finally be off the table.
In UK ecostats, today saw an unexpected rise in the UK’s public sector net borrowing figure for September from £4.918billion to £8.734billion.
The figure paints a promising picture for the UK economy but, with Brexit developments dominating headlines, the pound remained unmoved.
Meanwhile, the euro rose against the pound as the European Central Bank (ECB) unexpectedly eased their credit standards in the third quarter, providing relief for policy makers who fear a drop in lending during the Eurozone’s economic slowdown.
Analysts at Reuters commented: “With economic growth slowing and recession fears rising, the ECB has already approved extensive stimulus measures, hoping that making credit even cheaper will keep banks lending to the real economy even during a period of anaemic growth.”
With no European ecostats due out today, many euro traders will keep a close eye on Brexit developments, with any indications of a delay likely to improve market appetite for the single currency by lessening the odds of a disorderly exit.
Brexit will stand centre stage this week with the pound likely to soar if the Prime Minister can secure votes in favour of his withdrawal bill and timetable, both outcomes effectively banishing the chance of a no-deal outcome.