GBP was knocked down by a Reuters report that the Prime Minister’s office dismissed the news the UK is ready to stay in the EU customs union beyond 2021.
An unnamed source was quoted saying that “we agreed in December and in March to a backstop but the proposal put forward by the EU is completely unacceptable.”
“It would mean a border down the Irish sea and we could never agree to that. Negotiations are taking place on what a workable backstop might be.”
“The PM and the government are absolutely clear once the implementation period is over in December 2020 we will be able to not only negotiate and sign trade deals with the rest of the world but also implement them.”
For now GBP/USD is holding above 1.3450 temporary low, GBP/JPY well above 148.16 minor support. No panic selling in GBP yet. Hopefulling the UK government will come out and say something to answer the question, to stay or not to stay.!
