Blow to PM May.
IN a blow to PM May’s attempts to break the deadlock over Brexit, Ireland said it would not accept any changed to an agreement aimed at preventing a hard order on the island of Ireland.
Many lawmakers are opposed to May’s backstop arrangement which is intended to prevent a heart border between Ireland and Northern Ireland that would see Britain keep some EU rules if it is unable to agree to a trade deal.
The Northern Irish party – a component of May’s minority government – would back her new deal if it included a time limit to the backstop.
However, over the weekend, Ireland’s deputy prime minister Simon Coveney, said that the backstop was already a compromise drawn up to meet May’s negotiating redlines, and the EU and Ireland were united in the view it was not going to change.
He added that Britains proposal to change the backstop, such as introducing a time limit for unilateral escape clause, might command a majority among UK lawmakers, but would not be backed by the EU.
There are other amendments put forth by lawmakers to May’s plan, which would be put to vote in parliament on Tuesday including:
- removing the backstop entirely
- requiring the government to ask the EU for a delay to the Brexit date if a deal is agreed by the end of February, so as to avoid the chaos from a no-deal Brexit
The situation remains fluid.
The GBPUSD is down about 12 pips in pre-open trading. EURGBP is up about 7 pips.
On Friday, the GBPUSD raced above the 200 day MA (and closed above) for the first times since May 14, 2018. That MA comes in at 1.3069.The price also moved above the swing high from November 2018 at 1.31739. The current price is trading around 1.3186. A move below the 1.31739 level would tilt some of the bias back down but the 200 day MA remains a key level on the downside.