Pound Skids to Three-Week Low as Mixed Messages on Talks Signals Stalemate
Investing.com
Published Dec 02, 2020 02:32PM ET
Updated Dec 02, 2020 03:33PM ET
By Yasin Ebrahim
Investing.com - The pound erased gains and slipped to a three-week low Wednesday after the EU's chief Brexit negotiator said progress had stalled, cooling expectations that a deal was near.
GBP/USD fell 0.45% to 1.3354.
The EU's chief negotiator Michel Barnier said a deal wasn't guaranteed, signaling that differences over key issues including access to UK fishing territory and level playing field rules remain a stumbling block.
The news comes a day after the reports suggesting that post-Brexit trade talks had reached the so-called 'tunnel' - a media blackout period - stoking hopes both sides were set to reach a consensus on a deal.
Ahead of the update, there were signs the ongoing stalemate was starting to unnerve some members, who have called on the EU to ramp-up preparation for a no deal scenario.
There likely could be another twist to come in Brexit talks in the days ahead as the UK's proposal for a new finance bill - that undermines parts of the Brexit Withdrawal agreement - could dent the little progress in negotiations seen so far, Daiwa Capital Markets warned.
"(i)f the UK government presses ahead next week with draft clauses in the Finance Bill that were inconsistent with the Withdrawal Agreement, Barnier judged that the talks would be 'in crisis'."
Time is running out for a post-Brexit deal just under a month to go until the end of the Brexit transition period on Dec. 31, when the UK, without a deal, will trade with the EU under economically-burdensome World Trade Organization terms.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.