Prime Minister Boris Johnson lost his majority yesterday in the Houses Of Commons as he faces a showdown with members of his Conservative Party that will determine the U.K.’s exit from the European Union and the length of his premiership.
Johnson has vowed to leave the bloc on Oct. 31, but his political enemies are fighting to stop him him from doing so without a divorce deal. Tonight is the first of a series of key votes in Parliament.
Sterling rebounded on Wednesday after British lawmakers seized control of the parliamentary timetable to try to block a no-deal Brexit.
The gain, which followed the pound slumping to a three-year low on Tuesday, is likely to precede more big price swings in the currency as the battle over Brexit enters another crucial phase.
Lawmakers who defeated Prime Minister Boris Johnson’s government late on Tuesday are expected to introduce a bill in parliament on Wednesday seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.
This prompted the prime minister to announce that he would push for a snap election. It is expected that the motion for an early general election will be submitted on Wednesday.
GBP Rallied back up to 1.1061 this morning against the euro and 1.2158 as of 09:57 GMT.