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  • Attorney General Cox’s legal advice puts PM May’s deal in jeopardy.
  • US Dollar Index recovers above 97.20.
  • Upbeat data from the UK failed to help GBP ahead of the meaningful vote.

The EUR/GBP pair, which lost nearly 150 pips on Monday after British Prime Minister said that she secured legally binding changes to the Irish backstop following a last-minute meeting with the European Commission President Juncker, recovered almost all of yesterday’s losses with Attorney General Cox noting that the legal risk remained unchanged  that UK would have no lawful means of exiting the arrangement in the PM’s renegotiated deal. As of writing, the pair was up 0.9% on a daily basis at 0.8625.

“However, the legal risk remains unchanged that if through no such demonstrable failure of either party, but simply because of intractable differences, that situation does arise, the United Kingdom would have, at least while the fundamental circumstances remained the same, no internationally lawful means of exiting the Protocol’s arrangements, save by agreement,” AG Cox said in a written statement.

Meanwhile, earlier in the day, the data published by the UK’s Office for National Statistics showed that the industrial production rose by 0.6% in January following December’s 0.5% contraction and the GBP expanded by 0.5% on a monthly basis in January to beat the market expectation of 0.2%. Nevertheless, the data failed to help the British pound and investors are now waiting for the critical meaningful vote on PM May’s tweaked Brexit deal, which is expected to take place at 19 GMT.

Key technical levels


       Daily SMA20:  0.8658
       Daily SMA50:  0.8764
       Daily SMA100:  0.8829
       Daily SMA200:  0.8854
       Previous Daily High:  0.8678
       Previous Daily Low:  0.8533
       Previous Weekly High:  0.8656
       Previous Weekly Low:  0.8536
       Previous Monthly High:  0.8842
       Previous Monthly Low:  0.8529
       Daily Fibonacci 38.2%:  0.8588
       Daily Fibonacci 61.8%:  0.8622
       Daily Pivot Point S1:  0.8497
       Daily Pivot Point S2:  0.8443
       Daily Pivot Point S3:  0.8353
       Daily Pivot Point R1:  0.8641
       Daily Pivot Point R2:  0.8731
       Daily Pivot Point R3:  0.8785