The British Media reported last night that The Government agreed on a new “backstop” plan to stay in the EU’s customs’ union beyond 2021, in order to avoid a hard border with Ireland.
“In contrast to the position of the Labour opposition, PM May does not want to remain in the customs union post Brexit. Instead she has requested that her ministers work on two proposals.”
This was despite objections from Foreign Secretary Johnson and Environment Secretary Gove.The GBP has rallied well and went up from 1.34554 to 1.35687 against the USD. EURGBP is down to 0.87206 from yesterday’s high of 0.87823, meaning the GBP gained an edge over the EUR as well.
During the day, GBP started to weaken already and went down from the 1.3569 peak to currently 1.3500, as USD started gaining ground again as US bond yields remain high.
We tend to belive that with this news GBP will start gaining some odge over the USD, and could go back in the 1.37 area.