Search ForexCrunch

Early Thursday morning in Asia, Reuters came out with a news report quoting the UK’s opposition Labour Party Leader Jeremy Corbyn’s letter to party leaders and other senior politicians. It was also mentioned in the report that the opposition has vowed to call a vote of no-confidence in Boris Johnson’s government as soon as it believes it can win it and seeks to form a temporary government under leader Jeremy Corbyn to delay Brexit.

Key quotes

  • If Johnson loses no-confidence vote, Corbyn would seek to form a strictly time-limited temporary government.
  • Aims of temporary government would be to call a general election and extend Brexit departure date.
  • In an election Labour would campaign for second referendum on terms of leaving EU, including an option to remain.
  • It calls on other party leaders and senior cross party lawmakers to discuss his proposal.

FX implication

Although it is a much-known fact that the Labour will be the first to push for a no-confidence vote when the members of the Parliaments (MPs) return from their summer vacations, such headlines exert downside pressure on the British Pound (GBP).