Brexit – Talks Continue, with Barnier Due to Deliver an Update Later TodayThe Pound holds onto $1.32 levels, as the focus shifts to Barnier’s scheduled update on negotiations later today…
Brexit news updates have failed to pressure the Pound this week in spite of the House of Lords slamming the controversial Internal Market Bill.
Ahead of the vote on Monday, warnings had been issued to the House of Lords over any meddling.
Warnings were not heeded, however, with the House of Lords voting down the Bill by 433 votes to 165.
Party division amongst the Tories returned, with 44 Conservative peers reportedly voting down the bill. Amongst the 44 were all 5 living Tory Prime Ministers.
The Bill will now return to the Commons, where Boris and the Brexiteers will look to reinstate removed clauses. This is expected to drag on until December.
For the EU, the vote could not have come at a better time. President-Elect Joe Biden had raised concerns over the Bill ahead of the U.S Presidential Election.
How debates progress in the coming weeks could draw comments from across the Pond. It may not matter, however, with a no-deal Brexit remaining a real threat.
So, while the British PM looks to rally the Brexiteers, negotiations between Britain and the EU continue.
UK fisheries remains a major hurdle, with mid-November now just days away, and time rapidly running out.
As if to rub salt into the wounds of Barnier and the EU, news hit the wires today of Britain wrapping up a fisheries deal with Greenland. Greenland had voted to leave the EU back in 1982 before actually parting ways in 1985.
UK Fisheries and Trade
The good news from the latest round of intensive talks is that the EU has taken a softer stance on UK fisheries.
Once an agreement has been made over UK fisheries, then a trade agreement should follow quickly.
Such an outcome would certainly be a boost for the Pound and a much-needed morale boost for Britain.
With Donald Trump on his way out of Office, a successful conclusion to Brexit talks should then pave the way to a U.S – Britain trade agreement.
Assuming that Britain and the U.S can swiftly close out a trade agreement, other major economies would likely follow.
Boris Johnson and the Brexiteers would then be vindicated for pulling Britain out of the EU to go it alone.
At the time of writing, the Pound was up by 0.55% to $1.32351.
The recovery to $1.32 levels has come in spite of Joe Biden’s Presidential Election victory.
As Brexit talks continue, the markets remain optimistic about a last-ditch agreement to be made.
Later today, the EU’s chief negotiator Barnier is due to deliver a progress report.
As things stand, the mid-November deadline remains. So, Barnier’s update could have an influence on the Pound. We have seen Pound resilience, however, in the face of Brexit uncertainty. Any negative chatter should therefore have a limited impact, while a positive update should deliver strong support.
It will be a different scenario after the weekend, however, should both sides fail to form an agreement.