UK PM Johnson to enshrine 2020 Brexit date in law – The Telegraph

Having registered the victory in the United Kingdom’s (UK) general election, the Prime Minister (PM) Boris Johnson is all set to enshrine his pledge of leaving the European Union (EU) completely before 2020 ends. The Telegraph says that a beefed-up Brexit will, likely up for voting this week, will include the clause to stop the Brexit transition period beyond the 2020’s end.

Key quotes

The Prime Minister will use his huge majority to push through a radically altered bill that will prevent Parliament from extending the transition period beyond Dec 31 next year.

Downing Street intends to hold a vote on the bill this Friday to give voters who backed the Tories an early Christmas present and keep up the momentum of last week’s landslide election win.

It will also prove to voters that Mr. Johnson has no intention of using his immense new power to pursue a softer Brexit, as some Leave campaigners had feared.

FX implications

This being the widely anticipated outcome after the Conservatives’ victory in elections, markets show no immediate reaction to the news. GBP/USD seesaws near 1.3330. However, fears of a hard Brexit could extend the pair’s profit booking from a multi-month high.