UK trade deal ‘definitely’ not coming Sunday

Reuters reports that a new EU-UK trade agreement will “definitely” not come together on Sunday night, citing an official with the bloc who added that three most contentious issues remained unresolved.

”Some reports on Sunday afternoon said agreeing fishing quotas and access for EU vessels to UK waters from 2021 was almost done but the official said that was not the case.”

”The person, who spoke under condition of anonymity, added that ways to settle future trade disputes and guarantee economic fair play for companies were also not yet settled.”

”The head of the EU’s executive, European Commission President Ursula von der Leyen, and British Prime Minister Boris Johnson is due to talk again on the phone on Monday afternoon to try to get above the line a new partnership pact.”

Market implications

It’s all about Europe this week with not only nail-biting Brexit negotiations into the 11th hour but also that the EU Leaders’ summit will be beginning Thursday.

This should shed light on progress on both the EU Recovery Fund.

So, while Brexit is a risk for sterling, the euro will likely be grabbing the spotlight as well. 

EUR/GBP will be influenced by both sides.

Technically, it has broken to the upside and is retesting the daily breakout area from where bulls may be inclined to look for a long following subsequent holds above the support area.