Ireland’s Coveney: EU will not appease UK’s threat to break law

“European Union (EU) negotiators will not do anything to appease British government in the wake of its ‘gravely concerning’ threat to break the international lam,” said Ireland’s Foreign Minister Simon Coveney as per Reuters.

Key quotes

The British Government’s Northern Ireland Minister Brandon Lewis earlier said Britain could break international law – but only ‘limited way’ – after reports it may undercut its Withdrawal Agreement divorce treaty signed with the EU in January.

Any departure from the terms of the Withdrawal Agreement could ‘seriously erode and damage political trust’ in Brexit talks and keeping the peak Northern Ireland.

Coveney added, however, that Ireland and the EU would continue to take ‘calm and measured approach’ to the Brexit talks.

FX implications

Although the news adds to the market’s pessimism, GBP/USD consolidates the biggest losses in nearly six months while bouncing off July 30 lows to 1.2965 during the early Asian session on Wednesday.