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Early Wednesday morning in Asia, The Sun came out with a news report quoting a leaked letter from the UK’s former Chancellor Phillip Hammond to No10.

The news report said that the former Chancellor has written to the new PM to say his red lines for Brussels to scrap the Irish backstop “set the bar so high that there is no realistic probability of a deal being done”.

It was additionally noted that the same letter is signed by 20 other senior Tory MPs, including seven ex-Cabinet ministers.

FX implications

With a slew of the UK’s key political figures going against the Prime Minister (PM) Boris Johnson for his Brexit pledge, chances of a soft exit increases and can offer short-term relief to the British Pound (GBP). However, no immediate strong reaction to the news could be witnessed.