LONDON MARKETS: British Pound Turns Lower In Volatile Trade On Concerns Parliament Will Spurn Johnson's Brexit Pact

By Steve Goldstein, MarketWatch

U.K. parliament vote due Saturday

The British pound surged but then turned lower on concern Boris Johnson won't have the votes to pass a Brexit deal he agreed with the European Union.

The pound rose as high as $1.2987 before turning lower.

Stephen Innes, market strategist at AXI Trader, said the rejection by the DUP may also lead to hard-line Conservatives in Johnson's own party rejecting the deal. "Suggesting, that in a minority government, 18 is a lot of votes to pick up and could be a bridge too far, especially amid speculation that most of those voters are pushing for a second referendum," he said.

Related:Brexit pact faces steep odds in the U.K. Parliament -- and Johnson might not mind failure (http://www.marketwatch.com/story/brexit-pact-faces-steep-odds-in-the-uk-parliament-and-johnson-might-not-mind-failure-2019-10-17)

Gains for U.K.-listed stocks were more tempered, perhaps reflecting the short covering that already happened last week.

U.K. banks Barclays (BARC.LN) , the Royal Bank of Scotland (RBS.LN) and Lloyds Banking Group (LLOY.LN) each rose, but registered gains of less than 2%.

The FTSE 100 gained 0.85% to 7228.16.

(END) Dow Jones Newswires

October 17, 2019 08:36 ET (12:36 GMT)

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