Some ‘key’ UK releases and a barrage of BoE rhetoric essentially sticking to the not now NIRP script, but the Pound has been mainly hostage to Brexit impulses yet again. Cable has veered from 1.3300+ to circa 1.3165 and Eur/Gbp within pips of 0.9000 vs 0.8915 as a result on heightened hopes of a breakthrough before time runs out to get trade deal legislation drawn up, translated and ratified based in part on reports that France has conceded that its fishing rights will be limited post-transition alongside compromise from Britain on other issues. The media has also mentioned a barebones agreement by Monday that is touted as the last realistic chance to get all the formalities done by December 31, but the more intense phase of negotiations has been disrupted by a member of the Brussels’ team contracting coronavirus and the discussions now taking place remotely. In short, the clock is ticking and an EU envoy says the 3 crucial bones of contention are still unresolved (fisheries, state aid and the level playing field), so the talks will continue night and day, according to European Commission President von der Leyen, with PM Johnson insisting that UK interests and sovereignty must be secured in any pact or an Australian FTA (hard if not quite no deal) is the alternative.
