GBP: Hopes Of Last Minute Deal Are Revived But Significant Risks Remains For The Pound – MUFG
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GBP: Hopes Of Last Minute Deal Are Revived But Significant Risks Remains For The Pound – MUFG

What are the latest developments with Brexit and how might they affect the British pound?

Here is their view, courtesy of eFXdata:

MUFG Research discusses the latest Brexit trade deal developments.

“According to reports, a new UK proposal floated with the EU over the weekend on how to create a competitive level playing field might just break the deadlock…The EU has reportedly softened its earlier position where it demanded the right to take unilateral and automatic action to impose trade penalties if the UK didn’t follow EU standards. It now accepts that an adjustment [be made],” MUFG notes.

“The positive steps on the level the playing field have revived hopes that a last minute trade deal can be reached. In contrast, there appears to have been little progress on access to UK fishing water although it is seen as less of a hurdle to a deal than level playing field arrangements.  The latest developments have supported  our assumption that a last minute trade deal would be reached, but the risks remain high that efforts to reach a deal could still fail posing significant downside risks for the pound,” MUFG adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.