{"id":154686,"date":"2019-09-03T10:30:22","date_gmt":"2019-09-03T14:30:22","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154686"},"modified":"2019-09-03T09:57:39","modified_gmt":"2019-09-03T13:57:39","slug":"pound-plunges-as-bojo-rules-out-brexit-extension","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/pound-plunges-as-bojo-rules-out-brexit-extension\/","title":{"rendered":"Pound Plunges As BoJo Rules Out Brexit Extension"},"content":{"rendered":"
September 3, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The UK\u2019s Prime Minister\u00a0faces a fresh electoral threat<\/strong>\u00a0from 20 rebel Tory MPs who have joined Jeremy Corbyn\u2019s efforts to\u00a0rule out a no-deal Brexit.<\/strong><\/p>\n

The\u00a0motion to block a no-deal Brexit<\/a>\u00a0will most likely be tabled in Parliament as MPs fear they will lose control over Brexit. Risk heightened after Boris Johnson revealed his plans to shut down Parliament last week, as well as vocalized his\u00a0opposition to requesting another Brexit delay<\/strong>\u00a0from the EU.<\/p>\n

BoJo Threatens With Snap Election<\/strong><\/h2>\n

Today, Britain\u2019s Parliament returns from recess.\u00a0MPs will be voting on taking control over Brexit<\/strong>, as well as other bills. Boris made it clear in his speech outside No.10 yesterday, that if Parliament raised the steaks, he would\u00a0call on a general election on October 14th<\/strong>.<\/p>\n

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Hammond-led rebels were told they would be sacked should they proceed with backing the new\u00a0no-deal<\/a>bill. But, given the choice all MPs have and the time left until the Queen\u2019s Speech, Parliament could indeed\u00a0push through with any alternative legislation to avoid a hard Brexit.<\/strong><\/p>\n

The\u00a0votes on Tuesday and Wednesday<\/strong>\u00a0are critical for the UK\u2019s political and economic future.<\/p>

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UK Economic Data Increase Fears of Recession<\/strong><\/h2>\n

Political uncertainty has led to the\u00a0steepest decline in the UK\u2019s purchasing manager\u2019s index (PMI)<\/strong>, Monday\u2019s figures indicated. The\u00a0economy is slowing down,<\/strong>\u00a0not only because of UK politics but also because of global geopolitical tensions. As such, factory activity in the UK\u00a0fell to a level not seen since 2012<\/strong>.<\/p>\n

As Britain approaches the critical October 31st deadline, it\u2019s only natural that\u00a0new factory orders are deteriorating.\u00a0<\/strong>This is resulting\u00a0in increasing fears of a recession and businesses entering a vicious cycle from which they can\u2019t get out. The set of data showed that\u00a0activity contracted for the fourth consecutive month<\/strong>.<\/p>\n

The UK\u2019s Markit\/CIPS Construction PMI is coming out later today. Expectations remain way below the 50 recessionary mark.<\/p>\n

Cable Breaks Below January 2017 Level<\/strong><\/h2>\n

The outlook for\u00a0GBPUSD looks bearish<\/strong>. And yesterday\u2019s decline is continuing into today\u2019s session. This seems to suggest that cable has another leg to the downside \u2013 most likely a sharp one to take breakeven stops out.<\/p>\n

The extension to wave 5 (v) completion shows that\u00a0the currency pair could get as low as near $1.18<\/strong>. But this assumes that prices remain within the multimonth descending channel.<\/p>\n

But will this hold firm? Or will it break to fresh multiyear lows?\"GBPUSD\"<\/a><\/p>\n

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

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

By Orbex The UK\u2019s Prime Minister\u00a0faces a fresh electoral threat\u00a0from 20 rebel Tory MPs who have joined Jeremy Corbyn\u2019s efforts to\u00a0rule out a no-deal Brexit. The\u00a0motion to block a no-deal Brexit\u00a0will most likely be tabled in Parliament as MPs fear they will lose control over Brexit. Risk heightened after Boris Johnson revealed his plans to […]<\/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-154686","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154686","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=154686"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154686\/revisions"}],"predecessor-version":[{"id":154693,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154686\/revisions\/154693"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}