Boris Johnson set to put forward a motion calling for a 12 December election
Once again, we will have to divert our attention to two different parts of the Brexit drama as we start the new week.
Over in Brussels, European leaders will meet once again to try and reach a unanimous decision on how long they will extend the Brexit deadline.
Meanwhile, in London, Johnson will put forward an election motion in order to try and break the parliamentary impasse from last week's votes on his Brexit deal.
What can we expect from the EU?
If no extension can be agreed on, the UK will leave without a deal this Thursday.
As implausible as that sounds, it certainly is still possible as France continues to play 'bad cop' in all of this - wanting to only give a one-month extension to 30 November.
However, the most likely outcome despite the play-acting will be European leaders granting a three-month "flextension" to 31 January 2020.
What that means is that if a Brexit deal can be ratified before the deadline, the withdrawal agreement will come into force earlier than 31 January 2020 - with potential dates such as 1 December 2019 and 1 January 2020 being floated.
A likely caveat to be imposed in the extension is that the withdrawal agreement cannot be renegotiated again, and that there will be no further extension beyond this one.
Then again, we've heard that since last year and look where we are now.
What can we expect from the UK?
With a no-deal Brexit still not off the table, there is no chance that Labour will support Johnson's push for an election today.
As such, he will not be getting the two-thirds majority needed and that just continues to put everything in limbo.
If he follows through on his threat, it means that the government will continue with the domestic agenda and still keep Brexit legislation on ice until they manage to get their way with regards to an election motion.
The other option would be proposing a one-line bill - which only requires a simple majority to pass - to get to an election.
However, there will be much complications as the bill could also be amended before turning into law and there's no guarantee of passing it anyway without Labour support.
What happens then for the pound?
Uncertainty, uncertainty, uncertainty.
The issue with a three-month extension now is that it gives Johnson more time to "waste" with an election push rather than work through the Brexit legislation.
If he decides to shelve the Brexit agenda, essentially nothing is happening on the Brexit front despite an extension being granted.
As such, we could see more limbo with the waiting and wanting seen over the past few days set to continue for a much longer period.
In a sense, I reckon the mere exhaustion and being "caught in the middle" of this fiasco won't be a good thing for immediate pound optimism.
The way I see it is that we could see cable trade in a bit of limbo between 1.27 to 1.30 still but with little reason to be optimistic unless Johnson decides he wants to carry on with the Brexit legislation down the road.
As such, downside risks will start to grow as buyers become less confident with more uncertainty being introduced into the equation. That will be something to look out for.
