The drama over Brexit in the UK is by no means over. The new Prime Minister, Boris Johnson, just announced that he asked the Queen for a suspension of parliament and received approval from the sovereign. That means that parliament will convene October 14, the day of the queen’s speech, rather than September 12 when it was originally scheduled. 

PM Johnson clearly wants more time to get his house in order before asking parliament to support his no-deal Brexit proposal ahead of the October 31 Brexit departure date. Meanwhile, the opposition has shown that it is ready to call for new elections. It is quite possible that Jeremy Corbin will get his way and new parliamentary elections will be called. 

If new elections are called the October 31 Brexit departure date will surely not happen. Indeed, we might see another referendum on the subject before year-end, which then could scuttle the whole Brexit deal. 

As the political wrangling plays itself out the British pound is getting pummeled. Sterling lost some 1.1% against the dollar early today before recovering most of its losses. Chances are good that the pound will decline further in the days ahead, especially if new elections are called over the next few weeks.