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The Financial Times has reported that Michael Gove, the Cabinet Office minister, has “accepted that businesses cannot be expected to cope with Covid-19 and simultaneously face the prospect of disruption at the border at the end of the post-Brexit transition period.
Instead of full checks, the government will now introduce a temporary light-touch regime at UK ports like Dover for incoming EU goods, under both a deal and ‘no-deal’ scenario.”

Market implications

In other headlines today, No 10 says Brexit negotiations will now intensify, with weekly talks throughout July and into early August in the hope of a breakthrough.

This negotiation comes at a very difficult time for the UK which is still suffering from relatively elevated COVID-19 cases. Any headlines such as this will help to bolster the pound at its greatest time of need. 

  • GBP/USD bears step in as USD firms post a bearish Fed, subsequent risk-off:

The bulls can only hope that the easing of the UK’s lockdown goes uninterrupted by fresh waves of the virus as EU-UK Brexit tensions start to rise into the proposed UK PM/EC President meeting.

The EC Summit is between the 18the and 19 June. The UK’s PM Boris Johnson and the EC President von derLeyen are set to discuss matters further some time after the Summit amid hopes of a breakthrough. 

 

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