UK government faces another legal challenge over Brexit - MUFG


The BBC reported yesterday that the UK government is facing another legal challenge over whether the UK stays inside the single market after it has left the EU, notes Lee Hardman, Currency Analyst at MUFG.

Key Quotes

“According the report, the government could be challenged over whether withdrawing from the EU automatically results in the UK leaving the European Economic Area (EEA) as well. All EU members are in the European Economic Area and it had been assumed that when the UK leaves the EU it would leave the EEA as well. However, some lawyers are arguing that leaving the EEA would not be automatic and would happen only if the UK formally withdraws by triggering Article 127 of the EEA agreement.”

“The report adds additional uncertainty to the Brexit process and follows the successful legal challenge over whether the UK government can trigger Article 50 on its own without parliamentary consent. The pound has strengthened since the successful legal challenge as hard Brexit concerns have eased, although it remains unclear what exact from of Brexit the UK government will trying to secure. According to a leaked memo from a Conservative official, the UK might try to obtain a “Canada plus” deal although it has been downplayed by a government spokesperson.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD skyrockets to 1.2150 on poor US jobs figures

EUR/USD has hit a new multi-month peak above 1.2150 after the US reported an increase of only 266,000 jobs in April against nearly one million expected. The dollar is under immense pressure. 

EUR/USD News

GBP/USD soars toward 1.40 after disappointing Nonfarm Payrolls

GBP/USD has been extending its gains after the US Nonfarm Payrolls badly disappointed with an increase of only 266,000 jobs in April, nearing 1.40. Earlier, sterling benefited from the UK Conservative Party's gains in local elections. 

GBP/USD News

XAU/USD soars above $1,835 after weak Nonfarm Payrolls

Gold has leaped above $1,835 after the US reported an increase of only 266K jobs in April, far below expectations. Lower US yields support the precious metal.

Gold News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Ripple's victory granted the firm access to the SEC's documents on the three leading cryptocurrencies. The regulatory agency recently denied the possession of these documents.

More Dogecoin News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more

Forex MAJORS

Cryptocurrencies

Signatures