EU wants UK to pay Brexit divorce bill also in case of a no-deal Brexit

The European Commission warned the UK that it must pay the £39 billion Brexit bill that forms part of the withdrawal agreement also if there the withdrawal agreement is not approved. 

The bill covers the budget until 2020 and Brussels insists that it is valid as all 28 members of the EU, Britain included, agreed to it. 

The expectation of policymakers in London is that the UK will not be obliged to pay anything agreed upon if the deal is not ratified. 

Tensions are mounting ahead of March 29th, when Britain officially leaves the bloc.

GBP/USD has not responded to the news. Cable is bid thanks to the dovish Fed decision that weighs on the USD.