Pound US dollar exchange: GBP/USD sinks as Boris calls for rescheduling of Queen's speech

John Bercow, the House of Commons Speaker, aired many of the opposition party’s concerns, saying: “However it is dressed up, it is blindingly obvious that the purpose of [suspending Parliament] now would be to stop [MPs] debating Brexit and performing its duty in shaping a course for the country.” Sterling traders are becoming increasingly jittery as the situation evolves. The Queen’s speech occurs every year and is the trigger for resetting a new government session, automatically cancelling any legislation due to pass through Parliament from the previous session. 

This would scupper any cross-party plan to use legislation in their attempt to block a no-deal.

Labour leader Jeremy Corbyn said Boris Johnson is doing a “smash and grab on our democracy to force through a no-deal” and the Labour Party would do everything within its power to prevent Parliament from being side-lined. 

Meanwhile, July’s year-on-year shop price index fell at its fastest rate in a year, dropping from -0.1 percent to -0.4 percent today. 

BRC Chief Executive Helen Dickinson commented: “Weak consumer spending and stiff competition have kept prices down in the UK, however a disruptive no-deal Brexit, which would raise the cost of imported goods, could reverse this trend.”

The US dollar edged higher today despite escalating US-China trade tensions.

The situation flared when President Donald Trump described a phone call in which he claimed China had declared their willingness to negotiate. Chinese Foreign Ministry spokesman Geng Shuang then denied both the call and his country’s willingness to make a deal.

Mark McCormick, the Head of Strategy at TD Securities, said: “Markets are back in repair mode again after policymakers played nice at the G7. We still think this backdrop relies on sentiment and positioning than any real progress in the trade wars.” 

Meanwhile, US dollar investors await today’s speech from Thomas Birkin, the CEO of the Federal Reserve Bank of Richmond. Any dovish signals could infer an imminent US recession and would prove US dollar-negative.