Tusk Urges Politicians to be Patient

GBP

EU chair Donald Tusk on Tuesday called on for the “dream” that Britain might give up on leaving the European Union not to be dismissed and urged politicians not to let exhaustion with Brexit negotiations make for a hasty exit. Giving an account of last week’s summit to the European Parliament in Strasbourg, European Council President Tusk said he was responding to a statement by one national leader who had warned “dreamers” not to think “Brexit could be reversed”.

It was not immediately clear which leader he was referring to, but French President Emmanuel Macron stood out at the summit for pushing for Britain to be given only a few weeks more to decide whether to leave on negotiated terms or without them. The summit compromised by giving Britain another six months.

Tusk said: “I know that, on both sides of the Channel, everyone, including myself, is exhausted with Brexit, which is completely understandable. However, this is not an excuse to say: “let’s get it over with”, just because we’re tired.”

This comes as news following reports Brexit talks between Prime Minister Theresa May’s government and the opposition Labour Party were stalling, but moves were broadly contained in a market lacking fresh triggers.

EUR

The euro fell against the dollar on Tuesday after reports that a “significant minority” of European Central Bank policymakers think the bank’s economic projections are too optimistic.

Several ECB policymakers said the bank’s economic projections are too rosy as weak growth in China and trade tensions linger, four sources with direct knowledge of discussions said.

The “significant minority” of rate-setters in last week’s policy meeting expressed doubt that a long projected growth recovery is coming in the second half of the year and some even questioned the accuracy of the ECB’s projection models, given their long history of downward revisions, the sources said.

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