- The British pounds strengthens against the U.S. dollar and the euro after a string of parliamentary defeats for UK Prime Minister Theresa May increases the chances that Brexit will eventually be called off.
- The odds are still below 50%, though. JPMorgan (NYSE:JPM) raised the probability of Britain ultimately staying in the EU to 40% from 20%.
- Recently published legal advice by UK Attorney-General Geoffrey Cox warns that May's Brexit plan to avoid a hard Irish border will "endure indefinitely" until the UK and EU put in place a new long-term trading pact.
- Even though the backstop isn't intended to be permanent, Cox says that without a right of termination, "there is a legal risk that the United Kingdom might become subject to protracted and repeating rounds of negotiations," and that the backstop would remain even if negotiations break down.
- The pound rises 0.5% against the dollar and +0.3% against the euro.
- ETFs: FXB, EWU, GBB, DBUK, FKU, DXPS, HEWU, QGBR, DGBP, FLGB, UGBP
- Now read: U.S. Market Closure May Be A Firebreak
Original article