Analysts at MUFG, points out that today in UK, PM Johnson’s government will try again to bring a motion to the House of Commons to hold a general election on the 12th of December.

“Today’s motion will need only a simple majority to pass and both the SNP and Liberal Democrats have indicated that they could support it. Their support is not guaranteed however. The Liberal Democrats had initially wanted a general election on the 9th of December, ostensibly so that it happens before students break up for winter holiday. A further risk for the government is that amendments could be attached to the motion for a general election which could complicate its passage, such as lowering the voting to 16, but Lib Dem leader Jo Swinson has said she would not support attempts to attach such clauses to the motion. In order for an election to be held on December the 9th, parliament would have to be dissolved by midnight this coming Thursday. It is possible that some compromise date between the 9th and 12th December would have to be found. Overall it is looking highly likely that there will be a general election before both the end of the year and before Brexit is delivered. The prospect of a general election would certainly introduce more uncertainty for the pound going forward.”