European session review: GBP depreciates amid reignited fears of no-deal Brexit

GBP fell against other major currencies in the European session on Tuesday, as fears of a no-deal Brexit reignited as the latest round of the UK-EU talks started today. On Monday, the UK's PM Boris Johnson stated that, if a trade deal is not reached by 15 October, both sides should "accept that and move on", which would still be "a good outcome for the UK".

Germany's finance minister Olaf Scholz said today that the latest signals from London "do not raise excessive hopes for an agreement". He also warned that "a disorderly Brexit would not be good for Europe, it would be a real disaster for Britain and its citizens".

It was also reported by the FT that the Head of UK’s government legal department Jonathan Jones is leaving his position due to his disagreement with the UK prime minister Boris Johnson's plans to challenge critical parts of the Brexit Withdrawal Agreement, signed in January. According to sources close to Jones, he said he was “very unhappy” about the decision to overwrite parts of the Northern Ireland protocol with new powers in the UK internal market bill, - the new legislation, which was designed by the government to protect trade arrangements between the four parts of the UK and is to be published on Wednesday. 

Brussels warned there will be no trade deal if London tries to override parts of the Withdrawal Agreement. "I trust the British government to implement the Withdrawal Agreement, an obligation under international law and prerequisite for any future partnership," the European Commission President Ursula von der Leyen tweeted on Monday. "Protocol on Ireland/Northern Ireland is essential to protect peace and stability on the island & integrity of the single market," she added.