Brexit: UK PM Johnson officially asked for an extension, GBP/USD positive


UK Prime Minister has officially sent a letter to ask for Brexit to be delayed. European Council President Donald Tusk has confirmed receiving the request and confirmed the two men have spoken on the phone. 

Johnson was forced to send the letter to comply with the Benn Act – which stated that the PM must do so if a parliament fails to instruct otherwise by the end of October 19. Earlier on Saturday, MPs voted in favor of an amendment which forced the PM to do so if all the legislation has not passed. Following the announcement of the vote on the "Letwin amendment, the special session of parliament was cut short, delaying the Meaningful Vote on the Brexit deal to early in the week. 

Johnson was reluctant to delay Brexit and did not sign the letter. Nevertheless, he complied with the law and broke his pledge not to ask for an extension. EU sources have told reporters that the lack of the signature is meaningless, and they will consider delaying Brexit. 

The implementation of the Benn Act – which was intended to prevent the UK leaving the EU without a deal – is positive for the pound. The House of Commons still has time to approve the Brexit agreement and pass all relevant legislation before October 31 – thus leaving with a deal. In case it is voted down, the bloc will likely agree to postpone Brexit. 

Overall, avoiding a cliff-edge Brexit may push GBP/USD higher early in the week. Cable closed at 1.2973 on Friday, near the five-month high of 1.2989. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

Dollar in trouble, EUR/USD recovers the 1.1000 level

The American currency came under selling pressure, although the EUR/USD pair is a laggard, barely above the 1.1000 figure. Trump´s impeachment process seems to be behind the latest slide.

EUR/USD News

GBP/USD approaches 1.2900 as the greenback eases

The GBP/USD pair is at fresh weekly highs in the 1.2880 region, as speculative interest moved away from the dollar, and in spite of poor UK data.

GBP/USD News

USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields

The USD/JPY pair came under renewed bearish pressure during the American tracing hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven.

USD/JPY News

Gold: the $1,470 regions caps the upside

Prices of the precious metal keep the positive performance in the second half of the week, although the $1,470 region continues to cap the upside for the time being.

Gold News

Crypto bulls and bears meet at the crossroads

Cryptocurrencies are experiencing sharp falls among the main actors of the top-three cryptos by market capitalization. If in the past few days XRP was the top representative of fear, now red is also the color of Bitcoin and even Ethereum.

Read more

Forex MAJORS

Cryptocurrencies

Signatures