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Comments in Johnson's letter to Tusk: The Irish backstop is not viable

  • Boris Johnson's letter to Turks has been published.
  • Pound bears see EUR/GBP on course for parity, cable below the 2016 lows and the 1.19 handle. 

Johnson's letter to Turks has been published where he states that achieving a Brexit agreement is the government's highest priority but where he argues that the Irish backstop is not viable.

The letter:

FX implications:

GBP was the top performer last week over a 5-day review w of the G10s, riding stronger than expected data and the nothin that other political party leaders and Tory rebels will be seeking support in a potential vote of no confidence against PM Johnson. We will now await parliament returning from the summer recess on September 3 to determine whether the pound continues to recover ground. Hard Brexit risks and or a more neutral Federal Reserve in Spetmebt could otherwise see the Pound tumble below technical support levels and put EUR/GBP on course for parity while cable could end up below the 2016 lows and the 1.19 handle. 


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