DUP Will Oppose Any Backstop Concession


Sterling had another volatile session yesterday. The pound initially gained on reports the EU would offer concessions to the Irish backstop, but fell after the Northern Irish Party that supports the British government said it would emphatically oppose concession on any Brexit deal.

EU officials said the report that Brussels was prepared to offer a mechanism for the Northern Irish assembly to leave a new so-called backstop after a number of years was untrue. Proposals for what happens on the Irish border after Brexit is the main sticking point that’s preventing a Brexit withdrawal deal.

The pound had jumped more than 0.5% against the U.S. dollar after the report was published, but the Chief Whip of Northern Ireland’s Democratic Unionist Party said it would oppose any such concession sending the pound back down.

Key Announcements

09:30 – GBP: GDP forecast at 0.00%.
09:30 – GBP: Manufacturing production at 0.1%.
12:30 – EUR: ECB Monetary Policy Meeting Accounts.
13:30 – USD: Consumer Pricing Index at 0.1%.
13:30 – USD: Core CPI at 0.2%.