FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
63,175,234Confirmed
1,467,152Deaths
43,683,996Recovered
Fetching Location Data…
Advertisement
Advertisement
Bob Mason
Silvanute

The Latest

Brexit talks hit pause in response to members of the EU negotiating team testing positive for COVID-19.

Both sides agreed to suspend talks, as Barnier and other negotiators self-isolate.

Advertisement

It’s yet another delay ahead of what many had hoped would be an end to Brexit negotiations.

Thursday’s EU Summit had been touted as the final deadline going into this week. In the early part of the week, however, the talk of extending trade talks into next month left the deadline in doubt.

For the EU and Britain, time is rapidly running out, however. The Brexit transition period comes to an end at the end of this year. With COVID-19 hitting both the EU and Britain, an extension to the transition period could be a palatable outcome.

This week the news wires have already reported calls by Northern Ireland to extend the transition period.

It would be another game of cat and mouse, however, and extending the transition period will not be an easy process.

Until now, UK fisheries remain a major hurdle in getting over the line. The question will be whether France, in particular, would agree to an extension without a British promise of a compromise.

Such a play could look unfavorably for the French President, particularly with France depilated by the COVID-19 pandemic.

Advertisement

The British Pound

On Thursday, the Pound showed little reaction to the news of talks being suspended. Falling by just 0.09% on the day, the Pound was still up by 0.55% for the current week.

At the time of writing, the Pound continued to hold steady, up by 0.04% to $1.32608.

An extension to the transition period should provide the Pound with further support. That is assuming that the EU does not fall back into its rigid ways and continues to search for a way forward.

For the British PM and the Brexiteers, it would mean that there is yet more time to avoid ceding ground to the EU.

From a Brexit perspective, any compromise is likely to be considered unacceptable by the electorate and by Parliament.

Leaving the EU yet falling under EU rules and regs, while giving access to UK fisheries would be a bad deal.

The Internal Market Bill

Away from the ongoing negotiations, one other key area of focus will likely be the Internal Market Bill.

With President-Elect, Joe Biden, clear on his stance, vis-à-vis the Good Friday Agreement, the Bill’s passage will be eyed closely.

Following the House of Lords vote against the Bill, it will return to the House of Commons for debate. Mindful of Joe Biden’s view and the possible implications on a U.S – UK trade agreement, the Tories will need to tread carefully.

For the British Prime Minister, the House of Lords vote could offer an easy way to pull the Bill. A trade agreement with the U.S, while also supporting the Good Friday Agreement would be a positive outcome.

Such a move even could lead to the U.S President–Elect’s involvement in the Brexit deal. The last thing that the EU needs is to be at odds with Joe Biden from the get-go…

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