The pound plummeted to near three-year lows on Tuesday ahead of a crucial day for Brexit in Parliament.
Sterling GBPUSD, -0.2652% fell below $1.20 to its lowest level since October 2016 as British Prime Minister Boris Johnson threatened to call a general election if MPs block a no-deal Brexit this evening.
The currency bounced back above $1.20 but was still trading down for the day.
The pound’s continued descent meant the internationally focused FTSE 100 UKX, -0.28% avoided the heavier losses felt by other European indexes, sliding just 0.3%.
What’s moving the markets?
Johnson has threatened a snap election if a group of rebel MPs succeed in blocking a no-deal Brexit through a bill being put forward on Tuesday.
Snap Election Threat Link:
Him and Trump both face similar headwinds:
The delay bill, due to be voted on by Parliament on Tuesday, would push any exit past the current deadline of Oct. 31. U.K. media report that more than 15 members of Johnson’s own Conservative Party are likely to vote for the legislation.