Opposition Look To Force Boris

GBP

Opposition parties said they would try to pass a law which would force Prime Minister Boris Johnson to seek a delay to Britain’s departure from the European Union and prevent a potentially chaotic no-deal exit at the end of October. Parliament returns from its summer break next week and is preparing for a battle with Johnson, who has vowed to take Britain out of the European Union at the end of October with or without an exit agreement.

Labour Party leader Jeremy Corbyn hosted talks with opposition parties on Tuesday where they agreed that passing a law to force the government to seek a delay to Britain’s EU departure would probably have the most support. The opposition parties are seeking to repeat what they did earlier this year when lawmakers seized control of the parliamentary agenda to pass a law forcing Johnson’s predecessor Theresa May to seek an extension to Britain’s EU membership. They also managed to change legislation to require parliament to be sitting for several days in September and October, making it harder for Johnson to shut down parliament to pursue a no-deal, something he has not ruled out doing. The pound hit its strongest since July 29 against the dollar and euro after the parties presented a united front on Tuesday.

USD

The dollar fell modestly on Tuesday, suggesting investors were sceptical of the optimism expressed by President Donald Trump on the possibility of a U.S.-Chinese trade deal days after the two countries raised tariffs against each other. On Friday, China said it would increase tariffs on $75 billion worth of American goods. The United States retaliated by saying it would raise existing tariffs on $250 billion worth of Chinese goods to 30% from 25% on Oct. 1.

On Monday, speaking on the sidelines of the G7 summit of world leaders in France, Trump said Chinese officials had contacted U.S. trade counterparts overnight and offered to return to the negotiating table. Trump’s comments sparked a wave of so-called risk-on trades, which initially boosted the dollar, weakened safe-haven currencies, and lifted stock markets.

Key Announcements

None