Trade Negotiations

The British Pound is trading higher against the Euro, Dollar and other major currencies at the start of the new week amidst improved sentiment to the outcome of Brexit trade negotiations, which are due to end this week with a Thursday post-negotiating briefing likely to be a highlight.

The Pound was the third best performing major currency for the week on Friday and despite an inhospitable environment for risk assets, but price action could get wilder in the weeks ahead if currently “dreadful liquidity”conditions and the final quarter’s Brexit deadlines collide. 

The British Pound was the best performing major currency on Thursday following a newswire report that the EU was "open to a 'thin' Brexit deal" and that on the EU side there was "cautious optimism a deal can still be found".

UK high street lenders have been accused of "outrageously failing" British expats living in Europe following weekend reports that they would be shutting down their accounts after the UK leaves the EU at the start of 2021.

It's been a volatile day for the British Pound after it fell on the Bank of England's September policy event to then shoot higher hours later on comments made by EU Commission President Ursula von der Leyen, who said she remains "convinced" an EU-UK trade deal is still possible.

The British Pound has traded higher against the majority its peers over the course of the past 24 hours as it recovers from heavily-sold conditions and is boosted by news that Prime Minister Boris Johnson has agreed to amend the Internal Markets Bill (IMB).

The EU is set to delay a decision on allowing City of London clearing houses to continue clearing Euro transactions for EU-based clients due to concern over Britain's plan to breach its Brexit divorce settlement, reported Reuters, quoting "a derivatives industry source".

The British Pound extend its week of decline on Thursday with losses accelerating against the majority of its peers as markets ramped up their expectations for a 'no deal' outcome to Brexit trade negotiations.

The British Pound's sell-off looks set to enter another day with the currency down against all its major peers in mid-week trade, with analysts citing a deterioration in relations between the EU and UK for the declines.

The Prime Minister's office is reported to only see a 30-40% chance of a post-Brexit trade deal being agreed with the EU before the end of 2020, a number that is well below that assumed by financial markets.

The EU's Chief Negotiator Michel Barnier has given an update on the state of play in EU-UK Brexit trade negotiations, confirming that there has been little progress in the core areas of fishing rights, the 'level playing field' provisions and future governance.

The odds of the UK failing to agree a trade deal with EU is at 60%, according to economists at Berenberg Bank.

Another round of trade negotiations have concluded with confirmation that no progress has been made on outstanding areas of dispute, confirming we will have to wait for an October meeting of EU leaders for a final breakthrough.

The British Pound outshone the majority of its peers over the course of the past 24 hours as it looked to recover from a shaky start to August, with gains coming against a broadly softer U.S. Dollar, Yen and Franc but also against the Euro which remains one of the better performers in the marketplace of recent weeks.

The Pound-to-Dollar rate has become a key battleground for Euro bulls as the trade-weighted single currency scales new highs, throwing a spanner in the works of a market looking to see more losses for the greenback and a sustained European outperformance of the British currency. 

The British Pound was the best performing major currency of the past week, with gains coming amidst a combination of better than expected domestic economic data, an ongoing global stock market recovery and expectations for an EU-UK trade deal to be agreed by October.

The British Pound enters mid-week trade as the top-performing major currency of the past 24 hours, advancing against all its peers amidst an ongoing recalibration of global FX markets that saw an overbought Euro pare gains and an out-of-favour Dollar shrink back further.

The British Pound is likely to remain under pressure against the Euro and fail to reach its full potential against the Dollar until at least October, when a post-Brexit trade deal should finally be agreed and unlock a more sustained recovery.

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Pound Sterling slipped deeper into the red against most major rivals Thursday after Brexit negotiators confirmed that no progress has been made in the pursuit of a UK-EU trade deal after both sides doubled down behind their respective red lines, risking further underperformance for the British currency.

The British Pound was easily the best performing major currency on Tuesday, July 07 with gains being recorded against all its competitors in the G10 space.