Britain yesterday released two position papers for the divorce talks with the EU, in order to counter criticism that the lack of clarity surrounding the UK’s position in the negotiations is delaying the exit process.
One paper relates to how goods will be traded following ‘Brexit Day’ in March 2019 which is the day Brexit is officially due to take effect. The other paper focuses more on information sharing between the UK and the EU.
Brexit Secretary David Davis recently promised markets ‘imaginative and creative solutions’ , even emphasising that the papers will ‘drive the talks forward’ and show that the UK is making progress in the ongoing negotiations.
Historically, the European Commission has stipulated that trade talks are only to take place until issues such as the proposed exit bill have been address so the ‘stages of the negotiation’ continue remain a controversial topic.
Although three more papers are due to be released later in the week, Davis has said that he will continue to liaise with Brussels in order to allow trade talks to take place in tandem with the negotiations, a move which is likely to ease concerns that Brexit will remain behind schedule.
Political uncertainty within the White House continues to take its toll on the US currency. With no major data releases expected throughout the day, markets were expecting it to be a relatively quiet day for the dollar. However ongoing political tensions over the Trump administrations economic agenda as well as the Federal Reserve’s intentions to hike US interest rates for the third time this year have weighed on the dollar.
Markets were particularly concerned following news on Friday that Steve Bannon, a senior White House advisor had been fired. There were also further tensions surrounding North Korea on Sunday after it warned that joint U.S.-South Korean military drills will “add fuel to the fire” of already heighted tensions with Washington and it’s allies.
The exercise which will last until August 31st will incorporate computer simulations in order to prepare the two nations for conflict against Kim Jong-Un and his troops.