GBP/JPY plummets below 145.00 mark after Cox comments on Brexit deal

   “¢   GBP plunges after UK Attorney General gives trashes May’s last-minute deal with the EU.
   “¢   Cox says that the UK will have no lawful means of leaving the Irish Backstop arrangement.

The GBP/JPY cross plunged back below the key 145.00 psychological mark in the last hour, albeit quickly recovered few pips thereafter.

The cross extended its sharp intraday retracement slide from over one-week lows and tumbled further after the UK Attorney General Geoffrey Cox gave a thumbs down to the UK PM Theresa May’s amended last-minute deal with the EU.  

According to Cox, the interpretive document offered by the EU would grant no legally guaranteed right to exit the Irish Backstop in the event of a deal deadlock and triggered some aggressive selling pressure around the British Pound.

The cross crashed around 320-pips, eroding a major part of the previous session’s goodish up-move and was further pressurized by a modest pull-back in equity markets, which provided a minor lift to the Japanese Yen’s safe-haven status.

The bearish pressure now seems to have abated, at least for the time being, with the cross recovering around 60-pips as market participants now look forward to a meaningful vote in the UK Parliament on the PM May’s amended Brexit deal.

Technical levels to watch