THE BRITISH pound has plunged after Geoffrey Cox’s legal advice on Theresa May’s withdrawal deal delivered a blow to the Prime Minister. Attorney General Geoffrey Cox’s legal advice was published today (Tuesday) ahead of this evening’s meaningful vote. Mr Cox admitted Britain may find themselves locked into EU rules through the backstop. GBP previously had soared after Mrs May said she had won “legally binding” assurances from the EU.
However, earlier today the pound had plunged by 1.43 percent against the Euro.
Similar patterns occurred with the US Dollar, dropping by 0.8 percent.
The value decreased from €1.175 to €1.155, and from almost $1.33 to approximately $1.30.
GBP had risen amidst speculation the Prime Minister could indeed secure a deal before the UK are due to exit the European Union on March 29.
Mrs May said she had gained assurances from the bloc as she attempted to convince MPs to vote for her deal on Tuesday.
On Monday, the pound rose as high as $1.3290 having been as low as $1.2945 at one point that same day.
In a joint news conference with European Commission leader Jean-Claude Juncker on Monday evening, Mrs May stated there were three documents directed at addressing the Irish backstop – the most contentious part of her exit deal.
However, with Mr Cox’s admittance the UK could be stuck abiding by EU laws and BBC’s Political Editor Laura Kuenssberg reporting the DUP would definitely vote against the deal saw the pound plummet.
In a statement, a DUP spokesman said the party understood that the Prime Minister had made “limited progress” in her negotiations with the EU.
The spokesman said: “The European Union has been intransigent.
“It is possible to reach a sensible deal which works for the United Kingdom and the European Union but it will require all sides to be reasonable and in deal-making mode.
“It is clear that the risks remain that the UK would be unable to lawfully exit the backstop were it to be activated.”
“We will support the right deal which respects the referendum result and Northern Ireland’s place as an integral part of the United Kingdom.”
Marc Chandler, an analyst at Bannockburn Global Forex told PoundSterlingLive.com: “GBP drops about half a cent on confirmation that the DUP is not persuaded that anything has changed and it will reject the withdrawal agreement.
“A DUP official was one of the lawyers that advised ERG.”
At the time of writing the pound to euro exchange rate was 1.15857.