Brexit Talks Breakdown

Sterling was higher this morning after falling to a near two-week low yesterday as investors waited for headlines on the progress of Brexit negotiations between the EU and Great Britain.

With only a few weeks to go before Britain leaves the EU, officials are at an impasse over the so-called backstop aimed at ensuring that there is a frictionless border between Northern Ireland and Ireland.

Lawmakers will vote again on the deal next week. British Prime Minister Theresa May is expected to say today that the EU should give ground in discussions over the backstop before then to help it go through.

Uncertainty over whether British lawmakers will support May’s deal next week is showing up in the currency derivatives markets, with one-month implied volatility rising to its highest levels since mid-January.

The EU has told Britain to rework its backstop proposal by today, but a British source said yesterday that the Brexit impasse was unlikely to be broken before the weekend because the EU was not moving.

There is no key UK economic data expected today.

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd’s Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Manager. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the Information Commissioner's Office, with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers