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The European Union will threaten financial and trade sanctions against the UK over breaches of Brexit Withdrawal Agreement, The Times reported on Thursday, citing the EU’s legal advice document. According to the news outlet, the EU could start the “infringement proceedings” to pressure MPs to defeat the government on the Internal Market Bill. 

Earlier in the day, the European Commission reiterated that they are very concerned about the Internal Market Bill and the UK government’s intention to break the Brexit treaty.

Market reaction

The GBP/USD pair fell sharply on this headline and was last seen losing 0.08% on a daily basis at 1.2991.