Home Breaking Sterling falls and the Queen is dragged into the Brexit debate

Sterling falls and the Queen is dragged into the Brexit debate

by Mark Fitt Political Journalist
7th Aug 19 1:46 pm

Her Majesty the Queen has been dragged into the acrimonious debate over a no-deal Brexit, and sterling has continued to fall against the US dollar over no-deal Brexit fears.

The pound has dropped even further by 0.2% against the US dollar by lunch time in the UK to $1.214 and also fell 0.2% to €1.085 against the euro.

Since Boris Johnson became the prime minister on 24 July the pound has fallen by more than 2.5% and fallen more than 6% since May.

The former attorney general Dominic Grieve told The Times that the Queen has a “responsibility” to step in if Johnson refuses to step down over a no vote of confidence.

Jeremy Corbyn the Labour leader will most likely call on a vote in the House of Commons which will no doubt be supported by many cross-party MPs to stop the UK crashing out.

On Tuesday a cross party of politicians has launched legal action against Johnson to prevent him from forcing through a no-deal Brexit by suspending parliament.

A group of politicians including the newly elected Jo Swinson for the Lib Dems, Joanna Cherry QC and MP along with Labour MP Jess Philips.

The group has asked the Court of Session in Scotland to lawfully declare that Johnson cannot advise the Queen to shut parliament.

Dominic Cummings who is Johnson’s special advisor who is not an elected member of parliament has stepped into the public eye openly speaking to reporters and told Sky News “We’ll see what he is right about.”

As Johnson and his team are ramping the no-deal rhetoric, traders are growing increasingly concerned that the UK is going to crash out of EU with no-deal.

Craig Erlam, senior market analyst at foreign exchange firm Oanda said, “The declines we’re seeing in sterling today are relatively small compared to what we’ve become accustomed to.

“What’s interesting is that we’re not seeing it rebound much at all, despite having suffered significant losses in recent months.

“It may be summer recess but the no-deal rhetoric from Johnson and his team isn’t going anywhere, which may maintain the pressure on the currency.”

 

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