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UK Plays Hard Ball on Trade Talks But EU Offer of Extended Talks Provides Hope

CABLE
MNI (London)
Another day of sterling being pulled around by Brexit comment.
  • PM Johnson comments that given the EU have refused to negotiate seriously, we should get ready for an Australia style deal took cable down to $1.2865, just shy of Wednesday's $1.2863 low.
  • Risk in favour provided some buoyancy and allowed rate to recover to $1.2936 before a UK Govt spokesman stated that trade talks with the EU were over which dropped rate back to $1.2875.
  • Buyers emerged again into the dip, rate lifting into the 1600BST fix and aided by von der Leyen comments that the EU continues to work for a deal, though not at any price, which took it back to $1.2937.
  • Rate currently seen settled back above $1.2920 into the NY afternoon.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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