UKs PM Johnson ready to compromise with EU on Brexit and Northern Ireland protocol

Boris Johnson would be prepared to accept a limited role for the European Court of Justice in a bid to unlock a deal with Brussels over the Northern Ireland protocol, government figures say, as The Times reports.

'In public Johnson and Lord Frost, the Brexit minister, have insisted that the EU must agree to drop any role for the court. But senior figures have privately raised the prospect of a compromise that would allow a limited role for the ECJ in interpreting the application of EU law in Northern Ireland.''

''Under the plan, disputes would go to an independent arbitration panel, with the ECJ asked to interpret narrow matters of EU law as a last resort if dispute resolution failed.''

Market implications 

This is a welcome update for GBP although the rising US dollar and yields could hamstring GBP/USD to the downside in the immediate future. The DXY, an index that measures the greenback vs a basket of currencies, is potentially above to make a move to the upside again in an extension of the recovery from 93.50 support. 

Meanwhile, GBP/USD is testing daily support but it could remain trapped for the meanwhile. A break of the dynamic trendline would open prospects of a run towards the neckline of the W-formation near 1.3620.