Brexit Briefing: Pound Weakens Again on Talks ’Impasse’

Talking Points

The British Pound is descending again contra a US Dollar, Euro and Yen.

EU adjudicator Michel Barnier says there has been no vital swell in a Brexit discussions.

– That’s outweighing stability expectations of tighter UK financial policy.

What Does a Fourth Quarter Hold for a Pound, Equities, Oil and Other Key Markets? Find out here

A determined disaster to grasp a breakthrough in a Brexit talks between a EU and a UK looks to have taken over from UK financial process as a primary motorist of a British Pound. It fell behind again Thursday opposite all a vital rivals even as expectations sojourn high that a Bank of England will tie financial conditions shortly.

Following a latest turn of negotiations in Brussels, EU arch adjudicator Michel Barnier said: “This week we worked in a constructive suggestion and we simplified certain points without, however, creation any good stairs forward.” As for a supposed divorce check that a EU wants a UK to pay, Barnier said: “We are during an impasse, that is really worrying for thousands of projects everywhere in Europe and also worrying for those who contribute.”

UK Brexit Secretary David Davis was some-more upbeat though still certified that many work needs to be finished and pronounced that if a good understanding is not probable a supervision has to be prepared for a alternative.

This all means that a EU is many doubtful to determine to pierce on to a theme of a destiny attribute between a UK and a EU – as a UK wants – during a European Council assembly on Thursday and Friday subsequent week. Instead, that will be pushed forward to a following entertainment on Dec 14-15, good after a arriving assembly of a Bank of England’s financial process cabinet on Nov 2, when a MPC is widely approaching to double a UK bank rate to 0.5%. Current marketplace pricing suggests a luck of about 80% that a rate will rise.

Against this background, with a tightening of financial process mostly labelled in already, a Pound is looking diseased all turn and eased behind Thursday even opposite a diseased US Dollar.

Chart: GBP/USD Five-Minute Timeframe (October 12, 2017)

Brexit Briefing: Pound Weakens Again on Talks 'Impasse'

It was a identical story for a Pound opposite a Japanese Yen:

Chart: GBP/JPY Five-Minute Timeframe (October 12, 2017)

Brexit Briefing: Pound Weakens Again on Talks 'Impasse'

As for a Euro, that rose though afterwards mislaid some of a gains:

Chart: EUR/GBP Five-Minute Timeframe (October 12, 2017)

Brexit Briefing: Pound Weakens Again on Talks 'Impasse'

All charts by IG


Brexit Briefing: Pound Weakens Again on Talks 'Impasse'

Upcoming UK/EU Event Risk (October 13, 2017, All Times GMT)

Brexit Briefing: Pound Weakens Again on Talks 'Impasse'

— Written by Martin Essex, Analyst and Editor

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Follow Martin on Twitter @MartinSEssex

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