UK and EU Playing Their Sides on the Brexit Divorce, Doesn’t Bode Well for the GBP
GBP/USD has been bullish for several months, but turned lower as the USD decline stopped on September 1, while the recent Brexit events are pushing it lower. The key to the GBP falling has been the new internal Market Bill introduced by PM Johnson. If the bill passes it allows the UK to scrap parts of the already agreed Withdrawal Agreement from Jan 2020.
BoJo’s Bill Interpretation:
- Critics say this bill by PM Johnson will break international law.
- But, advocates of the bill say the bill is only in a ‘worse case’ scenario.
The Bill is to be debated in the UK’s House of Commons later today. After the debate a vote. If the Bill is accepted then that is bearish for the GBP. If the Bill is rejected by the commons then this is supportive for the GBP. Vote is expected later today. Remember UK Conservative party has a solid majority in the house, so should go through without problems.
Irish Foreign Minister on latest UK Brexit moves
- Latest UK moves is a negotiating tactic.
- His reading is that UK wants a trade deal
This is his comments on PM Johnson’s new proposed Internal Markets Bill. Yep, I agree with the Irish Foreign Minister. The UK’s Bill is all about posturing. However, it could backfire if Parliament vote it down.
Reuters reports that the EU is set to delay the UK access decision for euro clearing due to the British plan to breach the Brexit divorce deal. The EU had expected to make the decision this month. The EU is putting financial services in the crosshairs as it gets set to retaliate for the UK internal market bill.
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