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  • Brexit is a stalemate still, with Boris Johnson unable to win over the EU.
  • As for trade talks, the sentiment overnight was not an improvement from the previous scepticism.

GBP/AUD is flat around 1.8250 at the time of writing as traders get set for major risk events this week. Investors are very focused on the US-China trade talks and on ongoing  Brexit  discussions in what is generally a quiet week for data. GBP/AUD  traders will be keeping an eye on both risks.  

Brexit is a stalemate still, with Boris Johnson unable to win over the EU nor Ireland with his proposal and ith  time running out, the Pound is pressured. Earlier, in fact, the European Union’s full devastating point-by-point rejection of Boris Johnson’s Brexit proposals for the Irish border was leaked and  revealed in documents obtained by the Guardian.  An EU commission spokeswoman said, “The UK’s proposals do not meet at present the objectives of the protocol on Northern Ireland/Ireland and this is the shared view of the EU parliament but also all member states.”  

Trade talks back in range

As for trade talks, the sentiment overnight was not an improvement from the previous scepticism and the Chinese delegation is said not to be looking to negotiate on the tougher subjects which likely leaves a gaping hole in prospects of a trade deal.  

Indeed, the headlines on US-China relations were mixed. “White House advisor Kudlow said that delisting Chinese companies from US share markets was not on the table and a news report claimed that China was ready to reach agreement on selected areas, leaving difficult topics to be revisited next year,” analysts at Westpac explained, adding:

“But President Trump said a partial trade deal is “not what we prefer at all” and the US Commerce Department announced 28 additional Chinese organizations had been added to a trade blacklist. The Commerce statement said that “these entities have been implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups” in Xinjiang.”

GBP/AUD levels