Pound rises on hopes fisheries deal will break Brexit deadlock

The pound gained on Wednesday and rose on signs of progress in post-Brexit trade negotiations and a weaker dollar ahead of a Federal Reserve meeting.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sterling rose 0.6% against the dollar (GBPUSD = X.) at lunchtime in Great Britain just under 1.30 USD. Against the euro, it also rose by 0.5% (GBPEUR = X.) and traded at € 1.09. "data-reactid =" 33 "> The pound sterling gained 0.6% against the dollar (GBPUSD = X.) at lunchtime in Great Britain just under 1.30 USD. Against the euro (GBPEUR = X) it also rose by 0.5% and was quoted at € 1.09.

This came after an EU diplomatic source told Reuters that the UK government appeared to be "cautiously moving towards opening up fisheries" in trade talks. Another said there had been a "temporary, modest" postponement by the UK after the EU rejected its tougher stance.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CONTINUE READING: The forecasts for the UK economy are no longer getting worse – but they are still terrible"data-reactid =" 35 ">CONTINUE READING: The forecasts for the UK economy are no longer getting worse – but they are still terrible

The official spokesman for Prime Minister Boris Johnson also told reporters that there was a draft framework fisheries agreement between the UK and the EU, "based on the bilateral agreement with Norway that the EU already has".

The battle for mutual access to UK and EU waters has proven to be one of the most sensitive issues in the post-Brexit trade talks between the Johnson administration and EU negotiators.

The pound has taken a hit in recent weeks as tensions have increased and time is running out to close a deal before Britain's Brexit transition period expires at the end of the year.

The pound sterling rose 0.6% against the dollar at lunchtime on Wednesday in the UK. Graphic: Yahoo Finance UK

Businesses and investors fear disruption regardless of the outcome of the talks, but the pound's rise reflects the far less severe economic blow to the UK economy if an agreement can be reached.

The greater hopes of traders come despite the Prime Minister's insistence that Britain's position has been "consistently throughout" and that it would not accept proposals that threaten Britain's sovereignty over its waters.

The pound's surge is also flying amid warnings from European Commission President Ursula von der Leyen that the chances of a deal are dwindling day by day.

"With every day that goes by, the chances of a timely agreement dwindle," she told the European Parliament, according to Reuters. She proposed British proposals to violate the readmission agreement already reached with Brussels.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CONTINUE READING: The areas in the UK where unemployment is rising fastest"data-reactid =" 63 ">CONTINUE READING: The areas in the UK where unemployment is rising fastest

The UK government's admission of willingness to violate international law has sparked a huge backlash at home and abroad that deepened on Wednesday.

The head of the City of London firm warned the UK not to risk investments if it implements the plans in its single market bill.

Catherine McGuinness, its political leader, told PA: "The rule of law is the foundation of our system and we undermine it at our risk."

The weakness of the dollar has also boosted the pound sterling. Traders are expecting the Federal Reserve to point out further policy easing after the Fed's policy makers met later Thursday.



Source link

Be the first to comment

Leave a Reply

Your email address will not be published.


*