GBP/USD is trading below 1.3100, crashing from the highs. The new low is 1.3042. Support is at 1.3000 and resistance at 1.3110. Cable traded at a high of 1.3288 early in the day, so it already dropped more than 200 pips.
UK Attorney General Geoffrey Cox gives a thumbs down to the new Brexit deal. He says that the legal risk remains unchanged that the UK will have no lawful means of leaving the Irish Backstop arrangement.
He did say that the reassurances reduce the risk that of an indefinite trap within the backstop and do confirm it is a legally binding document. The clarifications provide a substantive and binding reinforcement to the legal rights available to the UK.
All in all, he gives the deal a bit of credit, but the fact that he says the legal risk remains is enough to convince eurosceptics to vote against it.
This is the critical clause, No. 19:
19. However, 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, at least while the fundamental circumstances remained the same, no internationally lawful means of exiting the Protocol's arrangements, save by agreement.
His opinion lowers the chances that Parliament will approve the hard-fought agreement clinched in Strasbourg late on Monday.
Here is the move on the chart, click to see the live GBP/USD feed:
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