The pound slumped to a level not seen in more than two-and-a-half years after U.K. Prime Minister Boris Johnson vowed to call a snap election if he lost a crucial vote in parliament on Tuesday evening.
Sterling fell below $1.20, a level not tested since January 2017, after Johnson said he would trigger a general election on Oct. 14 if lawmakers pass legislation later Tuesday forcing him to delay Brexit again in the event of a no-deal.
The pound fell 0.5% to $1.2011 after touching $1.1994 earlier. Sell stops below 1.2015 and stop entries below 1.2000 have been filled, according to a Europe-based trader, who asked not be identified he isn’t authorized to speak publicly.
Source : Bloomberg