Call Our Currency Exchange Broker Now on +44 207 4594107

Currency Converter

Pound Falls as Parliament Prorogation Is Deemed Unlawful

The Pound fell this week as the UK supreme court ruled that Boris Johnson’s parliament prorogation was ruled as unlawful. The decision saw GBP fall against a basketful of currencies including the Euro and USD.

Pound Falls as Parliament Prorogation Is Deemed Unlawful

The Supreme court consists of 11 of the UK’s top legal minds who voted unanimously. The court took the view that Johnson’s prorogation served to frustrate parliament and prevent it from performing its constitutional duties.

The court also argued that the conservative party would only need to shut down parliament for a few days in order to prepare for the queen’s speech rather than the 5 weeks which had been allotted. Johnson openly stated he respectfully disagreed with the courts’ ruling.

The decision was announced whilst Boris Johnson was in the US attending the UN general assembly meaning he faced both jet lag and a white-hot atmosphere in parliament.

Parliaments reopening prompted fiery exchanges between all parties, leaving commentators stunned at the bitterness and division. Standards dropped to an all-time low with the late Jo Cox being mentioned a handful of times. Notably when Boris Johnson stated that the best way to honour Jo Cox was to get Brexit done; A comment that has since followed him and prompted many to demand an apology.

Parliament debate

Before Johnson’s arrival, attorney general Jeffery Cox took to the podium explaining her respected the supreme court’s decision but launched a scathing attack on the opposition for not calling a general election stating that ‘this parliament is dead’.

Related:  US GDP, inflation and sentiment data provides great entree to Yellen's Jackson Hole speech

Cox was urged to publish the legal advice by the SNP’s Joanna Sherry one of the advisers who launched the supreme court case said that Cox had been ‘offered up as the fall guy’.

Cox regardless, defended the conservative parties view and said that he felt the move was both ‘lawful and constitutional’ and the suspension of parliament was made in good faith.

Cox confirmed during the parliamentary debate that he would take a few days to consider whether his legal guidance should be published.

Whilst Johnson still states that Brexit will happen with or without a deal, MP’s wasted no time in passing a law which forces the prime minister to request an extension if no deal or deal is not approved by parliament at latest the 19th Oct.

Many are now calling for Johnson to not just apologise for his comments in parliament but also to apologise to the queen. The courts ruling essentially highlighting that Johnson mislead the queen in order to limit, who prorogued the parliament in good faith.

Apology accepted?

Stories have been circulating as to whether Johnson will or won’t apologise to the queen with many news platforms reporting he already has.

It has however been reported by some news channels that Johnson apologised by telephone for any embarrassment caused by his prorogation request and the subsequent court decision which ruled the move as unlawful.

Related:  UK Services PMI boosts Sterling but future caution is aired

Royal sources now claim that Johnson is almost as distrusted as ex-prime minister David Cameron who chose to discuss many of his interactions with the royals in a recently published memoir.

Boris shrouded in more scandal

Compounding the pressure on the prime minister is another scandal which apparently took place whilst he was the mayor of London. It’s alleged that Johnson provided favourable treatment to ex-model Jennifer Arcuri. The treatment is said to include attendance on multiple trade missions and a government grant of £100,000. Boris is also the topic of a police watchdog investigation due to significant funds being transferred from her technology company to her start-up. The origin of the £700,000 remains unknown and is set to heap further pressure on Johnson this week.

Pounds decline as deadlock continues

The Pound has continued to fluctuate on Brexit developments rather than data releases and this week was no exception with GBP/EUR and GBP/USD moving in both directions.  Both pairs lost ground this at the tail end of the week with GBP/EUR falling under the 1.13 mark and GBP/USD falling under 1.24 a level where it appeared to have support.

GBP/EUR enjoyed a week high of 1.1358 which was fuelled by comments from the European Union that a deal Brexit deal could still be done. Since however the legal wrangling’s, parliamentary backbiting and uncertainty which now surrounds Johnson positions has condemned the pair to 1.1233 with further losses highly likely in the coming days.

Related:  Releases from key members of the Eurozone highlight decline in GDP growth
Foreign Exchange Live
Foreign Exchange Live
icon-angle icon-bars icon-times