09/08/2017 - UK Court Seeks Clarity Around Law Making Following Brexit

GBP

The pound continued to trade lower against the Euro yesterday amid mounting concerns surrounding Brexit. Britain’s most senior judge Lord Neuberger yesterday requested the government to clarify how UK law, which currently is subject to rulings made by European Court of Justice, will be formed post-Brexit. 

Lord Neuberger said parliament must be “very clear” on how judges should approach the decisions of the European Court of Justice as UK courts are set to continue interpreting ECJ case law even after Brexit. He also emphasised that UK judges should not be blamed for misinterpretations if their is a lack of clarity.

Neubergers comments follow from those of former UK chief mandarin Simon Fraser who on Monday outlined that divisions in the UK government cabinet have already damaged the UK’s position in formal Brexit negotiations. 

Fraser called on the government to elaborate on its views on issues such as future customs arrangements and the Northern Irish border.

USD

The dollar regained ground against major currencies yesterday after a strong US employment report boosted investors confidence in the US labour market and economy.

The US Labour Department yesterday revealed that the number of job openings came out at a record high of 6.163 million in June from 5.702 million a month earlier. Analysts had originally expected the figure, which excludes the farming industry, to rise to 5.775 million at the end of the second quarter from May’s initial reading.

The report follows after strong non-farm payrolls data released on Friday and has therefore reinforced expectations that the Federal Reserve will stick to its planned monetary tightening path for the rest of the year. 

Focus will now turn to the US inflation reports which will give markets an indication over whether the dollar’s recovery is sustainable in the long term. 

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