After poor progress on Thursdays talk criterion, Barniers statement that today will be an important day was once interpreted by the market as there may be drama today / this weekend. Within the day, the pound / dollar rose to 1.3539, a new high after May 2018. However, as more bad news spread, the drop was more than 100 points from the intraday high.
(GBP / USD minute chart, source: tradingview)
Earlier, senior British government officials were quoted by the media as saying that the possibility of a breakthrough was constantly decreasing, while accusing the EU of last-minute demands; sources on the EU side refuted this. According to the current schedule, if the EU and the UK can not reach an agreement on fair competition and fishery issues before December 31, the rules of WTO will be followed in bilateral trade from next year. In short, border inspection and tariff will become reality.
In addition to the United Kingdom and the European Union, France, which is directly associated with the United Kingdom in the field of fisheries, also spoke today. Clement Beaune, the French Minister of Europe, said that if the French governments requirements could not be met, the country would veto the agreement. Michelle Obama, President of the European Council, hastily said that he hoped that the 27 EU countries would maintain unity in the process of negotiations. When asked how the European summit will end in the next few days on December, he said vaguely that it is not the end of the next few days .
In front of us is not only the trade problem, but also the two sides are in a state of rivalry in international law. Alok Sharma, the British Secretary of state, said in a radio interview on Friday that the talks were in a difficult stage but that the UKs perceived status as a sovereign independent state was the basis for an agreement. In the context of Britain, independent sovereignty is clearly the internal market act which is scheduled to return to the house of Commons next Monday. The British government has made it clear that it will completely restore the violation of international law part (Northern Ireland issue) deleted by the house of Lords. Similarly, next Wednesday, fiscal bills that further violate the brexit agreement will be put on the table, and if both bills are passed, the talks between Britain and Europe will almost be broken down. Earlier, the European Union made it clear that it would not be possible to reach any trade agreement with Britain under the circumstances of unilaterally adjusting the brexit agreement. Source of this article: Wang Xiaowu, editor in charge of CFA_ NF