Published On: Tue, Sep 3rd, 2019

Pound LIVE: GBP Sterling surges as Boris loses majority before Brexit vote | UK | News

The pound crashed through the $1.20 barrier this morning, hitting a low of $1.1959 at 8.30am. However it has since soared back up after news of Phillip Lee’s defection to the Lib Dems this afternoon. Earlier, traders sold off Sterling in what has been called a ‘Flash Crash’ in the industry, with 1985 being the last time trading sank so low. David Cheetham, Chief Market Analyst at XTB UK, said the pound will continue to be volatile until the October 31 Brexit deadline.

He said: “If we needed any further proof as to headline driven the Pound is at present, the GBP/USD rate just surged 80 pips in under a minute.

“Seems algorithm driven after misinterpreted quotes from Boris spokesman but a clear example of the heightened sensitivity nonetheless.”

The news comes as Boris Johnson failed to persuade rebel MPs to vote with the Government later tonight instead of against it on blocking a no deal Brexit.

Yesterday, the embattled Prime Minister – who campaigned for Vote Leave with chief advisor Dominic Cummings and Michael Gove – gave an impassioned speech outside No10 urging MPs to back his plan, designed to strengthen his negotiating stance with the EU.

He said: “In the last few weeks the chances of a deal have been rising, I believe, for three reasons. They can see that we want a deal.

“They can see that we have a clear vision for our future relationship with the EU – something that has perhaps not always been the case.

“And they can see that we are utterly determined to strengthen our position by getting ready to come out regardless, come what may.

“But if there is one thing that can hold us back in these talks it is the sense in Brussels that MPs may find some way to cancel the referendum.

“Or that tomorrow MPs will vote – with Jeremy Corbyn – for yet another pointless delay. I don’t think they will. I hope that they won’t.

“But if they do they will plainly chop the legs out from under the UK position and make any further negotiation absolutely impossible.

“Should the vote this evening fail, it will mean Mr Johnson may have no choice but to accept the EU’s offer of a deal or call a snap general election.”

He added he would be forced to hold a snap general election should he not get enough backing this evening.

The result of this would be plunging the nation into further chaos in the final two months before Brexit.

More to follow…

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