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Ahead of this week’s key Brexit negotiations between the UK and the European Union (EU) diplomats, The Telegraph came out with the news suggesting further hardships for both the ends in agreeing over the trade relations during 2021.

Key quotes

Britain has accused the EU of wanting to string out Brexit trade talks until the November deadline for an agreement in the hope of making the UK cave into its demands.

With the latest round of negotiations beginning on Tuesday, Boris Johnson wants to up the pace of the talks after making it clear that he will not extend the transition period and will not budge on sovereignty issues such as fishing rights.

Ministers are anxious to ensure that businesses have as much time as possible to prepare for whatever trading regime is in place when the UK’s current arrangements come to an end on December 31.

They aim to make significant progress before Mr. Johnson holds a meeting with European Commission President Ursula von der Leyen in July, at which the Prime Minister will formally reject an offer of an extension of the Brexit deadline beyond December 31, 2020.

FX implications

While the news was already out at the weekend, GBP/USD seems to shrug off the negative signals. Even so, the Cable steps back from the intraday high of 1.2354 to 1.2348 amid the early Monday morning in Asia.