FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
100,786,780Confirmed
2,164,282Deaths
72,793,457Recovered
Fetching Location Data…
Advertisement
Advertisement
Bob Mason
Great Britain vs EU conflict, international relations, fists on flag background

The Latest

Brexit talks are set to resume later this week after both sides had agreed to suspend talks. A member of Barnier’s team had tested positive, meaning that the EU and the UK missed the EU Summit deadline last Thursday.

This week, there have been numerous reports of an imminent deal that would end the threat of a hard Brexit.

Details are sketchy, however. The talk has been of an interim, changeable agreement that would prevent Britain from leaving without an agreement.

This would ultimately give both sides more time to then fine-tune terms, without either side threatening to walk away.

Irish Prime Minister Martin reportedly affirmed reports of an imminent deal. Martin spoke this week, saying that the outline of a deal could be out by the end of this week.

Neither Boris Johnson nor Ursula Von der Leyen have made similar assessments, however. The lack of wider optimism has pegged the Pound back for now.

Advertisement

Pound

At the time of writing, the Pound was up by 0.35% to $1.33698 against the Dollar. While there hasn’t been a sharp response to the optimism across the news wires, the trend has been upwards.

We could see $1.40 levels come into play should both the EU President and British Prime Minister talk of an imminent deal. Some apprehension before an official announcement of a deal is expected, however.

The Pound has been here before…

With BoE Governor Bailey also talking of Brexit as the key threat to the UK economy, expect a market response to any news later in the week.

One drag on the Pound, however, will be the COVID-19 pandemic and existing containment measures.

This threat is also easing to a certain extent, however, as a number of pharmas make strides towards delivering an effective vaccine.

Taking into account the two greatest threats to the British economy, a Brexit deal and a COVID-19 vaccine would likely deliver quite a boost.

Downside risks remain, however, if Barnier’s more cautious comments are anything to go by.

It may fall on Boris Johnson to wrap things up on the Brexit front. A successful intervention would not only provide the Pound with support but cement Johnson’s position as Prime Minister. After a stretch of political uncertainty, this too should deliver support for the Pound.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US