The pound was up against the euro and the dollar yesterday, and is still strong today as Parliament approved a motion for an early general election. MPs voted for the election by 428 votes to 20, paving the way for the first December election since 1923. More than 100 Labour MPs abstained from the vote due to disagreement over the timing of the election.
Jeremy Corbyn announced that Labour would back an early December election, saying that due to the 3 month Brexit extension, the threat of ‘no-deal’ had been taken off of the table. Yesterday evening, MPs approved the government’s motion for an election which only needed a majority of one, rather than two thirds, as had been required previously.
Whilst the pound has strengthened today, an election could mean volatility for sterling, especially if the polls change in the coming weeks.
If the motion is passed by the House of Lords, Parliament will dissolve from next Wednesday for 5 weeks of campaigning.
