ING analysts suggest that it may turn out to be a key day for sterling after MP Dominic Grieve proposed an amendment to avert a no-deal Brexit.

“According to the proposal, parliament would be required to be in session every two weeks until 18 December. This would likely compromise any plan of Prime Minister-in-waiting Boris Johnson to suspend the legislature and bypass parliament in order to force a no-deal exit on 31 October. The House Speaker may or may not select the amendment for today’s debate, which may explain why GBP has still failed to move on the news. We expect, either way, to see some volatility today in the pound, where a vote in favour of the amendment may trigger a jump in GBP/USD towards the 1.26 level. EUR/GBP is close to a key 0.90 resistance, which may be tested should the amendment fail.”