UK Prime Minister Boris Johnson lost an important vote in the House of Commons late Tuesday when some members of his own party rebelled to support delaying the UK’s exit from the European Union.
Johnson lost the vote 328 to 301.
The move sets the stage for the House of Commons to consider a bill this week to delay the so-called Brexit.
Johnson has been adamant that the UK will leave the European Union on Oct. 31, with or without a negotiated settlement of trade and emigration rules with the EU.
Johnson is threatening to call an early election in response to the rebellion and has already moved to expel the MPs who voted against him from the party.
The pound was little changed against the dollar in recent foreign exchange activity.
“Should lawmakers prevent a no-deal Brexit at the end of next month, we can expect the pound to get a boost,” said Nigel Green, founder and CEO of deVere Group, in emailed comments. “But at the same time, political upheaval and a general election will likely push sterling down. As such, the UK’s currency remains volatile and vulnerable.”