{"id":8466,"date":"2019-03-12T13:07:27","date_gmt":"2019-03-12T13:07:27","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/pound-falls-sharply-on-brexit-deal-advice\/"},"modified":"2019-03-12T13:07:27","modified_gmt":"2019-03-12T13:07:27","slug":"pound-falls-sharply-on-brexit-deal-advice","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/pound-falls-sharply-on-brexit-deal-advice\/","title":{"rendered":"Pound falls sharply on Brexit deal advice"},"content":{"rendered":"\n
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The pound sank after the government’s senior law officer said the legal risk of the UK being tied to EU rules after Brexit “remains unchanged”.<\/p>\n

Currency traders fear that the attorney general’s advice means Theresa May’s revised Brexit deal is less likely to be accepted by pro-Brexit MPs.<\/p>\n

According to Geoffrey Cox, the UK may not be able to leave the Irish backstop without the EU’s agreement.<\/a><\/p>\n

The pound fell from \u00a31.17 to \u00a31.15 against the euro in a few minutes. <\/p>\n

Sterling also fell two cents against from \u00a31.32 to \u00a31.30 against the dollar. <\/p>\n

Mr Cox’s advice is likely to weigh heavily on MPs when parliament votes on the new version of the deal on Tuesday.<\/p>\n

Simon Derrick, managing director of BNY Mellon, said the fall in sterling reflected increased uncertainty over the Brexit process.<\/p>\n

“The market believes it increases the likelihood of a ‘no’ vote tonight,” he said.<\/p>\n

“It complicates the issue, it leaves us with the possibility still of a no-deal Brexit, and uncertainty over politics more generally. It muddies the water.”<\/p>\n

Mr Derrick said if the prime minister’s deal was defeated by only a narrow margin in Tuesday’s vote “that might encourage optimism” that a tweaked deal could be agreed before the end of the month. <\/p>\n

However, a substantial defeat for the prime minister was likely to push sterling lower, he said.<\/p>\n

“When the deal was originally defeated in January, sterling traded down at $1.26 . You could see it move lower again,” said Mr Derrick.<\/p>\n