GBP/USD Falls Below 1.22 After BoJo Decides to Prorogue Parliament
Arslan Butt • 1 min read
After weakening and falling below the 1.22 level, the Pound is trading steady against the US dollar on Friday. At the time of writing, GBP/USD is trading at around 1.217 following UK PM Boris Johnson’s decision to prorogue the Parliament before Brexit.
On Wednesday, Queen Elizabeth approved Johnson’s plan to suspend parliament for a month starting in mid-September. Even as lawmakers and critics accuse the UK government of taking an undemocratic step, the Pound turned bearish over increasing worries about a no-deal Brexit scenario.
After gaining some strength over the past few days as a result of optimism that opposition was trying to stop a hard Brexit, this latest move brings back a higher likelihood of Britain leaving the EU on October 31 without a deal in place. There may still be some hope for the UK as the government confirmed its plans to negotiate with the EU for a possible better deal in the coming weeks.