{"id":151164,"date":"2019-07-09T07:20:43","date_gmt":"2019-07-09T11:20:43","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151164"},"modified":"2019-07-09T07:04:26","modified_gmt":"2019-07-09T11:04:26","slug":"gbp-plummets-amidst-efforts-to-block-no-deal","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/gbp-plummets-amidst-efforts-to-block-no-deal\/","title":{"rendered":"GBP Plummets Amidst Efforts To Block No Deal"},"content":{"rendered":"
July 9, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Brexit is once again back in the spotlight. Former attorney general Dominic Grieve has outlined his plan to prevent Boris Johnson from forcing a \u201cno deal\u201d Brexit by shutting down parliament.<\/p>\n

Grieve has tabled an amendment to the Northern Ireland Bill which would require MPs to sit in parliament on September 4th<\/sup>, October 9th<\/sup>\u00a0and then every two weeks until December 18th<\/sup>. \u00a0<\/strong><\/p>\n

Second\u00a0Attempt\u00a0<\/strong><\/h2>\n

Grieve made a previous attempt last week at foiling plans to force a no deal Brexit.\u00a0<\/strong>However, it\u00a0was undone when the speaker of the House of Commons John Bercow didn\u2019t select an amendment put forward by Labour\u2019s ex-Foreign Secretary Dame Margaret Beckett. This would have blocked capital supply to government departments in the event of a no deal Brexit.<\/p>\n

BoJo Vows To Leave EU on October 31st<\/strong><\/h2>\n

Boris Johnson,\u00a0the favorite in the current Conservative leadership contest<\/a>, has publicly vowed to take the UK out of the EU on the current October 31st<\/sup>\u00a0deadline \u201cdo or die\u201d<\/strong>.<\/p>\n

Although Johnson has made it clear that he isn\u2019t \u201cattracted\u201d to the idea of proroguing parliament to make certain that the UK leaves on time, he has yet to rule it out<\/p>

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Grieve Stands Up For Democracy<\/strong><\/h2>\n

However, if passed, Grieve\u2019s amendment would effectively block Johnson from making such a move.<\/strong><\/p>\n

This is because it would ensure that parliament continues to meet in the run-up to the Brexit deadline.<\/strong>Speaking with UK Radio 4, Grieve said:<\/p>\n

\u201cIf you decide that Parliament is an inconvenience, when in fact it is the place where democratic legitimacy lies in our constitution and therefore it\u2019s acceptable to get rid of it for a period because it might otherwise prevent you from doing something which Parliament would prevent, then it\u2019s the end of democracy.\u201d<\/p><\/blockquote>\n

Grieve Putting Focus on Northern Ireland<\/strong><\/h2>\n

The devolved Northern Ireland government at Stormont is currently suspended, and the amendment\u00a0\u201cwould require fortnightly reports to be after the conference recess until an Executive was formed, or until the December recess\u201d.<\/strong><\/p>\n

The amendment is based on a specific section of the2004 Civil Contingencies Act. This commands the Commons and Lords to sit at times of national emergency.\u00a0The Times newspaper in the UK has reported that a group of roughly 30 MPs is currently planning to block Johnson\u2019s plans for a no-deal Brexit.<\/strong><\/p>\n

BOE Warns of Growing No Deal Brexit Risks<\/strong><\/h2>\n

At its last meeting, the\u00a0Bank of England noted that the risks of a\u00a0no deal Brexit<\/a>\u00a0have increased substantially. It indicated that, in such a case, the bank would likely need to cut rates<\/strong>\u00a0in a bid to backstop the economy.<\/p>\n

GBP has been sharply lower since the last BOE meeting. And as the October 31st<\/sup>\u00a0deadline looms and uncertainty builds, further downside is likely.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

\"GBPUSD\"<\/a><\/p>\n

After failing at 1.2750, GBPUSD has turned sharply lower, breaking down through the 1.2531 support. It is currently challenging the 1.2481 support. Below here, the 1.2438 2018 low is the next key level. A break of this would be a powerfully bearish technical development for GBPUSD. It\u2019s worth noting that we are seeing strong bullish divergence on the RSI indicator, warning of the potential for a squeeze higher. However, bulls will need to quickly see a break back above the 1.2750 level to negate the near term bearish bias.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Brexit is once again back in the spotlight. Former attorney general Dominic Grieve has outlined his plan to prevent Boris Johnson from forcing a \u201cno deal\u201d Brexit by shutting down parliament. Grieve has tabled an amendment to the Northern Ireland Bill which would require MPs to sit in parliament on September 4th, October […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-151164","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=151164"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151164\/revisions"}],"predecessor-version":[{"id":151166,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151164\/revisions\/151166"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}