The defeat of the British prime minister slowed growth on the pound

On the night of Monday to Tuesday, the House of Commons rejected the British prime minister's request for early parliamentary elections for the second time. Boris Johnson is getting closer to history as the UK's shortest-working prime minister, and the pound stopped at a time when most analysts expected it had just begun to recover dynamically.

Voting would be successful for Prime Minister Boris Johnson if his request for faster election was supported by representatives of the House of Commons 2 / 3. In the night voting from Monday to Tuesday, however, it failed again. Only 293 MPs voted in favor, while the minimum threshold was 434.

Already before the vote, Boris Johnson expected failure and informed the House of Commons what action he would take when it became a fact. Thanks to this, we know that he will go to the European Union summit again and continue negotiations. At the same time, he stipulated that he would not ask for another delay Brexitu.

"This government will continue to negotiate an agreement while preparing to leave the EU without it" - points out Boris Johnson, quoted by the Polish Press Agency.

The House of Commons does not want early elections

This is the second proposal regarding early elections, which was strongly rejected by the House of Commons. The main bone of contention is that the opposition is against the UK leaving the European Union, which is scheduled for October 31 October 2019. Political opponents of Boris Johnson do not want early elections, because all polls indicate their failure. And if it were large, then the prime minister could gain the majority needed to vote out of the EU without a contract, which of course he has in plans that he does not hide.

Secret documents will no longer be secret

It can not hide much, because during the last session of the House of Commons a proposal was adopted, which forces the government to publish documents that were created in preparation for Brexit without a contract. The government is also to disclose the private correspondence of officials who worked to suspend the operation of the British Parliament. Dominic Grieve, who has recently left the Conservative Party, has made the request. It has been supported in the 311 to 302 relationship and the government must implement it.

This is the aftermath of an article in the Sunday Times that accurately described how the government prepared documents on exiting the European Union without a deal. The analysis showed the great difficulties that Britain would face in such a case, but it would affect most of all the lives of the majority of its citizens. The documents directly indicate that leaving without a contract is a problem resulting from the lack of medicines, food, fuels, and thus a significant increase in their prices or even the unavailability (at least temporarily) of some goods. Politicians explain that these documents are "only" preparation for the most negative scenario, but the public is moved anyway.

The pound rate in an important place

Forex traders who have recently expected the pound to rise may be disappointed. After the initial rebound, the defeat of Boris Johnson introduced some confusion which - as the history of recent months shows - always weakens the British currency. However, it does not look so clear on the daily chart, because the declines were neither sharp nor long.

There is still no shortage of signals that say that the price of the pound has finally approached the bottom. Experience suggests, however, not to take a long position (e.g. GBP / USD) as a certainty. The situation is so dynamic that no one should be surprised if the British currency were still looking for new holes.

Chart GBP / USD, D1 interval. Source: xNUMX XTB xStation