Pound Tumbles 1% In Weekend Markets After Brexit Vote Delayed

With Boris Johnson's plan to pass the Brexit vote this weekend unexpectedly rejected, after the Prime Minister was once again let down by a Parliamentary majority demanding the vote be delayed, cable has predictably tumbled, and after spiking as high as 1.2967 on Friday amid rampant speculation that a passage of the Brexit deal was virtually assured, which prompted a violent short squeeze, moments ago UK spread betting company IG noted that cable has tumbled over 120 pips...

... sliding as low as 1.2809/1.2839 in weekend trading.

Ironically, with pound positioning having been massively short until very recently, when a historic squeeze flipped the net speculator balance bullish in recent days, absent a viable resolution and some clear path forward that does not involve a legal challenge, the odds of a no deal Brexit hitting on Oct 31 are once again all too real, and the result will be a violent reversal as shorts once again flood the pair...

... sending cable sharply lower when trading resumes late on Sunday.