While the UK PM Boris Johnson keeps singing songs of “Do or Die”, the European Union (EU) has a different say on the Brexit transition period, as claimed by the UK’s The Telegraph. The news quotes Phil Hogan, nominated as the EU trade commissioner last month.
Key quotes
“Boris Johnson will renege on his legal commitment to exit the Brexit transition period by the end of 2020.”
“In the past, we saw the way the prime minister promised to die in the ditch rather than extend the deadline for Brexit, only for him to do just that. I don’t believe Prime Minister Johnson will die in the ditch over the timeline for the future relationship either.”
FX implications
Although the British pound (GBP) is still cheering the Tory victory and the broad US dollar declines, news like this could weigh on the market’s risk tone. Even so, neither the USD/JPY, not 10-year US treasury yields have responded to the headlines as US-China trade optimism seems driving the trade sentiment off-late.
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