04/12/2018 - Irish Backstop Again Criticised

GBP

Yesterday the UK's chief law officer, Geoffrey Cox, said the UK will not be able to "unilaterally" quit the EU's customs rules under the Irish backstop. Cox said the so-called backstop was meant to be temporary arrangement and it was a "political question" as to when it would end. This comes after Mr Cox published an overview of his legal advice on Brexit as pressure mounts to publish the full advice, with Labour warning of a "constitutional crisis".

Prime Minister Theresa May said the advice is confidential, but some MPs think ministers do not want to admit it says the UK could be indefinitely tied to EU customs rules. In statement, Cox said he "strongly believed" the Commons would pass the Brexit deal - but it was a "political decision that each one of us must make" not a legal one.

His statement to the House of Commons will be followed by five days of debate on the proposed Brexit deal, which will get under way on Tuesday.

USD

The Dollar saw some gains yesterday afternoon after U.S. manufacturing activity rose more than anticipated in November. The ISM manufacturing PMI index hit 59.3 in November, better than the 57.8 expected. The news wasn’t all good however as construction spending was worse than expected, falling for the third straight month as outlays on private projects declined.

Key Announcements

09:15 – GBP: Bank Of England Governor Mark Carney Speaks about the Brexit Withdrawal Agreement before the Treasury Select Committee, in London.