A pedestrian walks on London’s Millennium Bridge.
Photographer: Simon Dawson / Bloomberg
Photographer: Simon Dawson / Bloomberg
After the UK, the European Union and the European Union said they would continue to talk about a trade agreement, keeping alive hopes of a late deal.
After UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to leave, the sterling climbed 1.2% to 1.3384 in Sydney by 6:41 am.Extra miles ”and continue to work on the post-Brexit agreement. The pair did earlier He said negotiators had until Sunday to make a deal.
With less than three weeks to go until 31 December, the transition period for the UK’s exit from the EU, after the official expiration date, many investors had hoped for success by Sunday – or the alternative clarification that Britain would actually exit the bloc without a deal. . Instead, they must prepare to analyze more Brexit headlines in the hood trade, as liquidity is likely to deteriorate as the holiday season approaches.
Mark Chandler, chief market strategist at Bancoburn Global, said: “Only the continuation of negotiations and the lack of immediate sales go ahead for some short term, but that means little more than a reflection of market psychology,” said Mark Chandler. The main market strategy. “If these negotiations fail, my condition will be that an attempt be made to restart them next year,” he added, “do not mind the deadline.”
The X Australian dollar fell to a pop high with its New Zealand counterpart as FX traders returned to their desks, negotiating with optimism that the deal could provoke a still mildly risky tone. Was sterling The euro traded heavily as traders moved to adjust the situation after the pair went down in the open. The common currency slipped 1.1% over the pound.
If no trade agreement is reached by the end of the year, the free movement of goods, services, people and capital for decades will come to an abrupt end. British companies will Return to trade with the EU under the rules established by the World Trade Organization in 1995. This means that imports and exports to the EU will be subject to WTO-negotiated tariffs – essentially a tax on goods.
Bofo told Global Research earlier this year that this would be the first time the Bank of England had been forced to cut interest rates below interest rates. Bloomberg Economics It is estimated that the UK economy will face a near-term shock of 1.5% of output.
Many bank strategists Predicted that negotiations would indeed continue; Have become market participants Strict for numerous missed deadlines and last minute negotiations around Brexit in recent years.
However, it has not stopped traders in recent days from taking precautions to limit their exposure. The cost of hedging hinges in pounds on Friday was the highest since the March epidemic-induced market upheaval – the spike has only increased over the past five years following the 2016 Brexit referendum.
(Updates with market prices, quotes from the second paragraph.)
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