Sterling falls due to concerns over a timely trade deal
Sterling fell yesterday after concerns mounted about the obstacles that are keeping the European Union and Britain from reaching a timely trade deal. Boris Johnson had previously proposed that the October 15th deadline be the conclusion for talks and we await for a confirmation on the scope of a new extension.
Fisheries, competition and dispute resolutions remained the main areas if contention, and the pound weakened after the UK said that they would not compromise at any cost. This kind of rhetoric is particularly worrying to investors, especially after the EU signalled their intention to ramp up their no-deal preparations. Johnson has also previously spoke of his apparent willingness to end the transition period without a deal if their wishes are not met. Many see this as a ploy to force pressure on the negotiations but such tactics ultimately increase the likelihood of volatility as investors need to differentiate between fact and fiction.
13:30 – USD – US Retail Sales (MoM) (Sep); expected to increase to 0.7% from previous 0.6%
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