EU Wants Serious Alternatives To Backstop


The Pound had a sluggish start to the week after gains from last week were trimmed by the apparent gap between the British and European positions on Brexit. In particular, Luxembourg Prime Minister, Xavier Bettel, gave a particularly critical press conference, where he said that British counterparties had failed to propose any serious alternatives to get a deal passed before the October deadline. Boris Johnson had been scheduled to appear alongside Bettel, but left after the press conference was to be held in the shadow of anti-Brexit protesters.

The Pound had experienced a strong week of trading last week, after optimism had soared on the chances of a no-deal being avoided. Not only had lawmakers voted to stop a no-deal exit, Johnson and his team had been talking up negotiations. Yesterday’s events have overshadowed this rhetoric, and have again shifted the onus on the UK to come up with a new concrete alternative.

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10:00 – EUR: German ZEW Survey for Economic Sentiment; expected to increase to -37.0 from -44.1.