Comments by UK prime minister, Boris Johnson, in parliament
- A border down the Irish Sea would hurt UK interests
The pound is dribbling lower as traders are digesting the headlines, with cable now down to a session low of 1.2900. I would argue that the EU response is very much the key factor now, as the UK has already laid out their version of the story in publishing the bill.
At the end of the day, it is all a matter of interpretation from a political standpoint. The UK insists that it may be inconsistent with international laws so it is up to the EU to officially voice out their take on the matter from hereon.
If they take adopt a more compromising approach, then perhaps downside for the pound may not extend all too much - support @ 1.2867 also a consideration.
However, with Brexit negotiations in general still going nowhere, scope for any major upside in the quid is also likely to be limited.
