[ad_1]
Original title: The latest talks between the EU and the UK failed to overcome the deadlock and Sunday was set as the deadline for negotiations. There is still hope for a dealGBPWelcome great opportunity 1.35
On December 9, British Prime Minister Johnson dined with European Commission President von der Lein, but the latest Brexit talks failed to make a breakthrough. The British side revealed that there are still large differences in the positions of the two parties and it is currently not known how to overcome them, but the two sides agreed to reach an agreement on the direction of future negotiations this Sunday, when the United Kingdom will reach a agreement.
The latest meeting failed to break the deadlock, and the leaders of Britain and Europe set Sunday as the deadline for Brexit negotiations.
Despite the three-hour meeting between the leaders of the European Union and the United Kingdom on December 9, the Brexit trade negotiations remain at a standstill, but the negotiations will continue in the coming days.
According to a British official, the two leaders held frank discussions on Wednesday night, and it turns out that there are still big differences of opinion between the two sides on future trade relations. The official said Johnson hopes to do everything he can to reach consensus on a trade deal, but it is unclear whether the major existing obstacles can be resolved.
The two sides agreed to continue negotiations in the coming days, but must make a final decision on future negotiations by December 13.
British Prime Minister Johnson said that the situation remains very “difficult” and that the agreement must respect the independence and sovereignty of Great Britain. He is determined not to allow any fair trade method to be implemented without being tested.
EU sources said the dinner was “very constructive” and leaders from both sides were in a good mood. There is still a long way to go in the negotiations, but both parties have agreed on the possibility of reaching an agreement. . European Commission President Von der Lein said: “We had a lively and interesting discussion with Johnson and we clearly understood each other’s positions, but the positions of the two sides are still far apart. We agreed that the relevant teams should meet. right away to try to resolve key issues. We will make a decision before this weekend. “
The UK will leave the European Union in January 2021, but agreed to maintain the same standards and regulations by the end of the year, so both parties have time to formulate new trade deals. However, this transition period will end in three weeks and people are very concerned that a new deal will not be ready by then.
On December 9, Johnson had a working dinner with the President of the European Commission, Von der Lein, trying to find political solutions to three pending issues in the trade negotiations: fishing rights, competition rules and arbitration of possible new agreements. . Since the beginning of the summer of this year, negotiators have stalled in these three areas.
After the “lively” dinner, Von der Lein confirmed that the two parties still had “big differences”. She said: “We agree that the (negotiation) team should meet again immediately to try to resolve these key issues. We will make a decision before the weekend.”
Brexit negotiations are particularly difficult because it is the first time in the history of the EU that both sides have tried to deviate from the current set of rules. Traditionally, new trade agreements will lead to harmonization of food, labor and other standards.
The EU’s goal is to ensure that its markets are not harmed by Britain’s exit from the EU. At the same time, the UK hopes to regain its full power to decide policies and regulations. Finding common ground between these two positions requires a certain compromise.
Failure to reach an agreement in the coming weeks will increase taxes and costs for UK and EU exporters. However, regardless of whether an agreement can be reached, as of January 1 of next year, citizens and businesses on both sides will face different rules. The idea of reaching a trade agreement is to facilitate this change.
It is worth noting that EU leaders will hold the last summit this year in Brussels on December 10-11. Brexit negotiators are expected to conclude their negotiations during this period.
The Brexit deadlock has yet to be broken. The pound fell in early trading on Thursday and institutional views are divided.
Due to the unsuccessful progress of face-to-face negotiations between the UK and EU leaders, the three main issues that hampered the conclusion of the deal have not been resolved during the eight months of negotiations.
GBP to USD
At the opening of the Asian market on Thursday there was a gap that reached a minimum of 1.3320. Since then, the exchange rate has recovered slightly and is currently trading around 1.3380.
As time has run out and expectations of a breakthrough in negotiations this past weekend have failed, some investment banks have turned pessimistic. Ayako Sera, a senior market analyst at Sumitomo Mitsui Trust Bank, said: “It looks like no deal will be presented to the EU summit starting today. The market has been very optimistic that a deal can be reached. I am a little surprised. “
Thu Lan Nguyen, currency strategist at Commerzbank, said the likelihood of reaching a deal is still highly uncertain and the market is unlikely to fully reflect the possibility of reaching a deal or not. It will likely take some time for the market to assess the results, and there may be smaller fluctuations or quick corrections after large fluctuations.
However, there are other institutions that are more optimistic. According to Daragh Maher, head of US currency strategy at HSBC in New York, the relatively strong pound exchange rate is close to this year’s high, indicating that the market still expects the best results, even if It is not this week, it will be the next period. He believes the market appears to tolerate further delays in reaching a deal, even if it is postponed until 2021. The pound rallied sharply on December 8, indicating that the market will maintain a “buy on the downside” attitude.
TD Securities stated that if the Brexit negotiations eventually reach a positive deal, it is expected to promote
GBP to USD
As it rises, the exchange rate may rise above the 1.3660 to 1.3715 range.
Huitong.com recalls,
Given that negotiations will continue until the EU summit this weekend, the agreement to reach hope remains, at least the EU implies. Considering that the news is still confusing, the huge market shock is expected to continue over the next two business days through the weekend. If there is progress in the Brexit negotiations before this Sunday, the pound is expected to break the previous high of 1.3539 set on December 4.
（
GBP to USD
Daily chart)
At 9:45 a.m., December 10, Beijing time,
GBP to USD
Report 1.3363 / 65.
Massive information, accurate interpretation, all in the Sina Finance APP
Editor in Charge: Guo Jian
