Boris Toughens Brexit Stance Pound Weakens FTSE 100 and FTSE 250 Fall
Published / Last Updated on 16/12/2019
The pound has dropped by over 0.3% today against the US dollar after Boris Johnson announces he will make it law that Britain will leave the European Union in 2020 deal or no deal.
The pound was trading around $1.32 but since Friday, when the Conservative party won the general election on Thursday, it has been steadily falling.
The House of Commons will vote this week on an amended withdrawal agreement bill (Brexit Bill) to determine if an extension will be ruled out.
If both UK and EU members agree, Brexit could be delayed for up to 2 years, but the Government is wanting to add a new clause to the Brexit Bill to make it illegal for Parliament to do that.
Johnson can push through a Brexit deal after winning 365 seats without worrying about getting support from external politicians.
If the Brexit Bill is passed on Friday, the Government must negotiate a free trade agreement with Bloc by the 31st December. If not, then the UK-EU trade relationship will default to World Trade Organisation (WTO) terms.
Comment
2020 could be another rocky year both politically, economically and for markets.