British pound at one-week high after parliamentary rebuke of Boris Johnson

Britain's Prime Minister Boris Johnson gestures as he speaks during the weekly question time debate in Parliament in London, Britain, September 4, 2019, in this screen grab taken from video.

The British pound on Wednesday reached its highest level in a week, extending gains after Parliament voted to seize control of the Brexit agenda.

With the U.K. Parliament set to vote on extending Brexit until January, the pound  rose as high as $1.2220 from a previous close of $1.2084.

“The pound will be rebounding in the short term as the UK Parliament seizes control to try and block a no-deal Brexit – but with major political chaos and a looming election, the currency remains vulnerable,” said Nigel Green, chief executive of financial adviser deVere Group.

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Prime Minister Boris Johnson on Wednesday challenged Labour leader Jeremy Corbyn to call an election — — amid polls that show the Conservatives with a lead. A vote on extending the Brexit deadline by three months is due to be held Wednesday night.

U.K. media also speculated that even if Parliament passes a bill extending the Brexit deadline, Johnson might not send it to the Queen for what’s called a royal assent, thus preventing the legislation from becoming effective.

The stock market was more focused on Hong Kong politics, with Asia-centric companies including Prudential PLC , Standard Chartered and HSBC gaining after Hong Kong’s Carrie Lam formally withdrew an extradition bill.

The FTSE 100  rose 0.5% to 7302.91.

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