UK could declare Brexit 'water wars' – The Telegraph

Re-igniting Brexit fears, the UK is looking to restrict imports of European mineral water and several food products in a tit-for-tat response to Brussels’ refusal to end its blockade on British shellfish, Telegraph reported, citing senior government sources.

The government sources said that the UK ministers are considering potential restrictions on the importing of mineral water and seed potatoes.

FX implications

With Brexit concerns back in play, the pound could under fresh selling pressure, prompting a corrective decline in GBP/USD from 34-month tops of 1.4037.

The cable benefited from broad-based US dollar weakness, as the bulls shrugged off weak UK Retail Sales data. UK Markit's preliminary PMIs for February bettered expectations.