Sterling Tanks on Brexit Legal Advice By Investing.com

Forex News


© Reuters.

Investing.com – The British pound reversed early gains on Tuesday, falling by more than a cent against the dollar to an intraday low as the U.K. government’s top lawyer said the risk of being trapped indefinitely in a customs union with the EU remained unchanged, despite marginal concessions made by the EU Commission late Monday.

was down 1.01% to 1.3015 by 07:32 AM ET (11:32 GMT), after rising as high as 1.3288 earlier in the day.

The pound fell after U.K. Attorney General Geoffrey Cox said the tweaks to the withdrawal agreement hammered out over two years by the U.K. and EU did not eliminate the risk that the U.K. could be trapped in the so-called Irish backstop indefinitely, despite assurances from Prime Minister Theresa May.

“The legal risk remains unchanged that if through no such demonstrable failure of either party, but simply because of intractable differences, that situation does arise, the United Kingdom would have … no internationally lawful means of exiting the Protocol’s arrangements, save by agreement,” Cox said.

The advice came ahead of a parliamentary vote on the divorce deal later in the day.

May said Monday that she had secured “legally binding changes” to her Brexit deal, which addressed concerns over the Irish backstop, an insurance policy designed to avoid a hard border in Ireland.

The euro rallied against the pound following the advice, with jumping 1.16% to 0.8646.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Articles You May Like

Asia’s Strongest Currency Faces an Election Test By Bloomberg
Double Dutch: Artist Draws With Both Hands At Once
Kitingan worried about Sabah’s security after arrest of 13 terror suspects
ESM’s Regling says time ripe to give euro more clout, deepen union By Reuters
How Malaysian Pastry Chefs Became The Best In The World

Leave a Reply

Your email address will not be published. Required fields are marked *