Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Pound Holds Firm Despite Little Progress on Brexit Deal Amid Crunch Talks

ForexNov 30, 2020 03:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Yasin Ebrahim

Forex – The pound continued to hang onto gains Monday as traders continue to bet on a Brexit deal despite little progress on U.K.-European Union trade talks to resolve differences on several issues including fishing quotas. 

GBP/USD rose 0.24% to $1.3346, though had been as high as $1.3385.

The EU is reportedly ready to launch no-deal contingency plans as soon as Thursday, should crunch talks this week not resolve key sticking issues including quotas on fishing, Reuters reported, citing an EU senior diplomat.

EU negotiator Michel Barnier last week offered to return about 15% to 18% of the fish caught by European fleets in British waters to the U.K. under a free trade agreement.  But the U.K. views the proposal as unacceptable as it falls well short of the 80% demanded, according to U.K. media reports.

While many expect both sides to break the deadlock on fishing quotes, other sticking points including a level playing field and governance are of far more importance and there is uncertainty over whether an agreement will be reached this week.

"While the EU’s first offer on fish was rejected by the UK as derisory, some reports suggest that an agreement on that political sensitivity could be reached this week," Daiwa Capital Markets said. "But there are, of course, far more important issues than fish to resolve – the level playing-field and governance being key – and it remains to be seen still whether an agreement on those fundamentals can be achieved this week."

Time is running out for both sides to strike a deal with just about one month to go until the end of the Brexit transition period on Dec. 31. If the U.K. and EU fail to reach an agreement by the December-end deadline, then the U.K. will be forced to trade with the EU under economically-burdensome World Trade Organization terms.

"Sometime this week is thought to be the deadline to have a deal in order to give enough time for lawyers to finalize the text and translation into the EU’s 24 official languages ahead of the New Year’s Day leave deadline," Scotia Economics said.

The game of brinkmanship between both sides added to the uncertainty over the prospect of a deal, with Germany reiterating the economic bloc's stance that while a deal is in the best interests of both sides, the EU will not cave in to the U.K.'s demands.

"We don't need a deal at any price and we have made this clear," Germany chancellor Angela Merkel said. "A deal is in everyone's interest."

Pound Holds Firm Despite Little Progress on Brexit Deal Amid Crunch Talks
 

Related Articles

Column: Dollar smiling from ear to ear
Column: Dollar smiling from ear to ear By Reuters - Sep 22, 2021

By Mike Dolan LONDON (Reuters) - Whether investors run for the hills or not after the past week's stock market shakeout, the episode provides a glimpse of where to run for cover -...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email