Pound v US dollar: GBP unsteady as EU gives UK government 48 hours to save Brexit
THE UK government’s scramble for satisfactory progress in phase one of Brexit negotiations has dragged the pound lower versus the US dollar this morning.
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The GBP/USD exchange rate has slipped -0.1 per cent to $1.338 so far today, with further losses prevented by the international backlash against President Donald Trump’s decision to recognise Jerusalem as the capital of Israel.
The pressure on the UK government to resolve the current deadlocks has intensified after EU chief negotiator Michel Barnier gave the UK 48 hours to agree to the preliminary text of the deal.
The warning comes after EU member states informed Mr Barnier that they will otherwise not have time to scrutinise the components of any agreement ahead of next Thursday’s European Council meeting.
Prime Minister Theresa May is now under even more pressure to negotiate the turbulent political waters surrounding the issue of the Irish border.
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While most parties involved are firmly against the idea of a hard border between Northern Ireland and the Republic, the DUP has vowed to block any agreement that would see Northern Ireland remaining within the same regulatory framework as members of the customs union.
Moreover, any agreement that effectively allows Northern Ireland to operate as though it is still a member of the single market will infuriate Leavers and Remainers alike.
The former are claiming this amounts to a “soft Brexit”, while the latter would argue that if Northern Ireland is allowed to remain in the single market and customs union than there is no reason for the rest of the UK not to.
Further losses against the US dollar been limited by the international fallout to President Trump’s decision to move the US embassy in Tel Aviv to Jerusalem.
