- GBPUSD Falls to Session Lows on Legal Opinion
- Legal Risk Unchanged
BOTTOM LINE
GBPUSD dropped to session lows after the legal opinion from Attorney General Cox highlighted that PM May’s latest assurances reduces the risk that the UK could be indefinitely and involuntarily be detained with the backstop. However, what is more crucial is that Cox also noted that the “legal risk” remains unchanged that the UK would have no internationally lawful way of unilaterally exiting the protocol’s arrangements. Consequently, this reduces the likelihood that PM May will get her deal through at tonight’s vote.
Following the announcement by AG Cox, DUP sources have hinted that they do not see how the party can support the deal, which in turn may see the Eurosceptic ERG follow suit.
GBPUSD CHART: 1-Minute Time Frame (Intra-day)
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
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