Brexit: Critical vote may be postponed to October 22, GBP/USD may fall with a gap

Yohay Elam FXStreet

UK Prime Minister Boris Johnson may send his Conservative MPs home and bring forward the second reading of the Withdrawal Agreement Bill to Tuesday, October 22. In this scenario, the government will make the special Saturday sitting meaningless.

Reporters say that sources in 10 Downing Street would make the move if the amendment pushed by Sir Oliver Letwin is approved by parliament. The amendment requires the PM to seek an extension to Brexit if the full bill fails to pass on Saturday.

Johnson is set to send a letter to EU Council President Donald Tusk and request a delay to Brexit.

Sky News' political editor Beth Rigby has tweeted:

- If Letwin passes, No 10 source says the govt will present Withdrawal Agreement Bill Mon, hold vote on 2nd reading Tues & Meaningful Vote on deal on Tues
- PM will also have to send letter tonight asking for ext (might be send two 1 legal, 1 political?)

Traders may sell the pound early on Monday when markets open. GBP/USD has closed the trading week at 1.2973, close to the five-month highs of 1.2989. The pound advanced on the prospects of parliament approving the Brexit agreement. Another delay may send it down amid growing uncertainty.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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