UK Prime Minister Boris Johnson’s latest maneuver to push through Brexit has been described by opponents as a “coup” and a “constitutional outrage.” For investors, it’s a warning sign: Ignore Brexit at your risk.
Johnson shook Britain out of its summer lull on Wednesday when he asked the Queen to suspend Parliament just days after it returns from its summer recess next week, and only weeks before the Brexit deadline on October 31.
Why it’s important: The move gives lawmakers less time to block a messy no-deal departure from the European Union. Johnson has said he will take the United Kingdom out of the bloc on October 31 with or without a deal to protect trade.
The pound fell as much as 1.1% against the dollar on the news. It’s trading lower again on Thursday, and remains below the $1.22 mark.