Pound fell further Tuesday against the dollar. The decline follows Prime Minister Boris Johnson’s promise to hold elections soon if he loses an important vote in parliament later on Tuesday. For the first time since January 2017, the pound is worth less than $ 1.20.
The Labor Party, together with several Conservatives, which are called rebels, has submitted a motion to prevent a no-deal breakdown. If the motion is adopted, this means that Johnson will be forced to postpone the Brexit until the end of January unless he can reach an agreement with the EU before mid-October.
Various market researchers take into account a further fall in the value of the British currency. The pound can drop to $ 1.10 the moment a new-election mandate mandate is at stake in new elections.