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European leaders are crossing the wires with respect to Brexit progress and German Chancellor Merkel has said that Brexit talks are now in the ‘final meters’. In earlier trade, the French President, Emmanuel Macron, had also  been speaking and said  that he “wants to believe” an agreement on Brexit is being “finalised” among negotiators in Brussels.

Speaking in Toulouse, the  French President  said, “I want to believe that a deal is being finalised and that we can approve it tomorrow (Thursday),” when EU leaders are meeting with Prime Minister Boris Johnson.

FX implications:  

Brexit is gaining positive traction, as is the Pound, elevated in the mid 1.28 handle,  as a deal is about to be presented to UK Parliament. However, the DUP is a thorn in the side of the effort at this juncture, and as the Guardian writes, “Beyond the DUP’s issues with the deal, it is understood the talks between British and EU negotiators have run into trouble on the issue of level playing field guarantees.”

The guarantees are promises to maintain EU standards in environment, tax and state aid to prevent Britain from undercutting the EU for a competitive advantage.

The guarantees are part of the political declaration agreed by Theresa May, which sets out the broad terms for future free trade agreement talks, but Johnson’s chief adviser has sought to have the reference removed from the text.

A diplomat said EU leaders would not agree to the revised withdrawal agreement separately to the political declaration