GBP could rise before stronger downside pressure comes
Chart used with permission from Bloomberg Finance LP, as of 13 March 2019.
GBP ratcheted up to a 1.3289 high on misplaced optimism that came from David Lidington’s (UK Prime Minsiter Theresa May’s No 2 man and Minister for the Cabinet Office) statement that May had secured fresh, legally-binding assurances on the Irish border backstop.
However, these gains evaporated when UK Attorney General Geoffrey Cox said the last-minute changes “reduce” the risk of UK being indefinitely and involuntarily held in the Irish backstop matter, but the legal risk remains unchanged albeit smaller. GBP has pushed as low as 1.3005.
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