Election looms

A spokesman for the prime minister said his speech would make the case that "it is now time for the people to decide after parliament has failed them, so we can resolve this once and for all".

"Jeremy Corbyn continues not only to block Brexit but is now also stopping the people having their say by refusing a general election."

The opposition Labour Party cast Johnson's language - including calling Corbyn a "chicken" - as pathetic, said he was trying to act like US President Donald Trump, and compared him to a 3-year-old toddler having a tantrum.

Against the dollar, the pound rose 0.8% to $1.2353, after jumping 1.4% on Wednesday on the sense that the prospect of a 'no-deal' exit had receded. UBS Global Wealth Management said sterling could rally to $1.30 if Brexit was delayed until January 2020 and an election was held after October.

Opposition parties say they are in favour of an election in principle, but were on Thursday debating whether or not to accept Johnson's proposed date of Oct. 15 - before Britain is due to leave the EU.

While sterling rose on parliament's bid to block a no-deal exit, an election before Brexit would allow Johnson, if he won, to repeal the blocking bill. The law will pass the upper house, the Lords, by Friday evening.

Diplomats said an election campaign would halt any Brexit talks with the EU and expressed frustration with the turmoil in British politics at such an important juncture in European history.

In particular, they said London had yet to make any meaningful proposals to address Johnson's complaints about the divorce settlement that his predecessor Teresa May agreed with the EU but failed to get through parliament at home.

"The UK side continues to produce chaos and it is very hard to predict anything," said one EU diplomat.

-Reuters