(24 September 2019) DAILY MARKET BRIEF 1:Waiting for UK ruling

(24 September 2019) DAILY MARKET BRIEF 1:Waiting for UK ruling

24 September 2019, 13:33
Jiming Huang
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The focus today will be on the UK Supreme Court ruling on whether PM Boris Johnson acted unlawfully when he prorogued parliament. The key point is whether the five-week suspensions of Parliament was an abuse of power or standard political business? If deemed legal, Prime Minister Johnson will be emboldened and will again try to push the United Kingdom out of the EU by 31 October. The opposition might yell about a coup but when parliament returns on 14th Oct they will have significant issues including how to prevent Boris from defying the Benn Bill (triggering a hard Brexit). If ruled illegal, things get interesting. Parliament could be recalled by the speaker of the House John Bercow, however, there is also speculation that Johnson could call another suspension. What happens next is truly anyone guess. EURGBP price lingering is right in the middle of Boris Johnson hard Brexit and May pledge not to leave without a deal. The ruling will provide direction to GBP, but right now we can just wait.

By Peter Rosenstreich

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