Thursday’s emergency Brexit talks between UK and EU representatives will discuss Britain’s attempts to undermine its divorce settlement with the bloc.
Britain and the EU will hold emergency Brexit talks at 1200 GMT, in addition to ongoing negotiations this week.
Britain stated that by passing the Internal Market Bill it would act outside international law by breaching the divorce treaty. Now, EU negotiators are trying to gauge how to deal with London.
Britain left the EU in January but is now in a transition period during which it has access to EU markets. It was given a year to agree on a new trade deal with the EU.
The bloc could take legal action under the treaty with Britain. The UK representatives must reassure Brussels sufficiently that a proposed new British law will not break agreed commitments.
U.S. House of Representatives Speaker said any potential U.S.-UK trade deal would not pass the U.S. Congress if Britain undermines the Good Friday Agreement.
The Good Friday Agreement lies at the heart of the Brexit Withdrawal Agreement. If undercut, it would cause tensions at the Irish border.
Britain hopes to forge trade deals with the United States and China after its departure from the bloc. Signing agreements with other countries alone was one of the reasons Britain said it wanted out of the EU.
START TRADINGForex – Emergency Brexit talks roil markets
Most other currencies too ground higher as the dollar resumed its downtrend.
The US dollar had hit a one-month high against a currency basket on fears world markets were headed for another downturn.
The Australian dollar fell to $0.7263 amid concerns abound worsening diplomatic ties with China over the treatment of the two countries’ journalists. Investors are also monitoring an outbreak of coronavirus infections in the state of Victoria.
The euro edged higher on Thursday against a weaker dollar. But the possibility that the ECB could flag more policy easing if it deemed economic recovery capped the gains.
The British pound fell to a 10-week low of 91.64 pence versus the euro as well as sliding 0.5% to $1.2932, near to a six-week low. The pound has fallen on Wednesday to a six-week low of $1.2885. Versus the euro, sterling traded flat at 90.84 pence.
Brent crude futures fell back to $40.45 a barrel after bouncing back from a three-month low overnight. U.S. crude futures slipped 0.8% to $37.68 a barrel.
Gold was steady at $1,947 an ounce.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money