Britain and the EU are reportedly able to reach a Brexit trade deal that was previously difficult to reach. The shape is obvious, but London will not sign the deal at any cost. This was conveyed by the UK finance minister on Thursday.
If counted, there are now only five weeks left until the UK finally exits EU orbit. Therefore, the two sides are trying to reach a trade deal to avoid a tumultuous end to the five-year Brexit crisis. This is a wise thought.
With the existence of constructive attitudes and good intentions on all sides, reaching an agreement is not impossible. The statement was made by finance minister Rishi Sunak to Sky. Later, the deal must be clearly visible what it looks like. All the rules must be transparent.
Fixed Deal Must Be Free of Charge
Sunak also told LBC radio that reaching an agreement remains the best option. It will make the ‘future’ is better. However, they should in no way stretch to a deal at any cost. This is not the right step to take in the future.
European Commission chief Ursula von der Leyen said on Wednesday that the E.U. was ready if Britain leaving it even without any new trade deals. The situation despite the "real progress" seen in previous Brexit talks has been very difficult.
An official involved in the negotiations said a Brexit deal was possible. However, that is unlikely to happen as soon as the weekend. An EU diplomat also stated that it is likely to be able to come by next week. It means they still need time.
The European Commission where Brexit negotiator Michel Barnier is leading talks with the UK on behalf of the entire bloc will reportedly renew its national envoy to Brussels. He was tasked with reporting on the latest developments in trade talks on Friday.
Currency Developments in Global Markets
Still, about Brexit, an EU source said that Barnier himself would probably go to London later. The aim is to have further discussions with his UK partner, David Frost. More discussions are underway to look for possibilities if there are opportunities for breakthroughs.
Meanwhile, the U.S. Dollar was sold at a lower price in early European trading on Thursday. These conditions are weighed down by gloomy US data. Furthermore, optimism over coronavirus vaccines is encouraging market participants to look for riskier currencies in global markets these days.
EUR/USD reported an increase of 0.2% to 1.1931. The figure is close to its highest in two months. Elsewhere, GBP/USD rose 0.1% to 1.3366, near its highest level in more than two months. The USD/JPY currency reported a 0.1% drop to 104.34.
In addition, AUD/USD rose slightly to 0.73664. This is close to the highest level since September. The next is NZD/USD which rose slightly to 0.70036 and is approaching its strongest level in more than two years. Both currencies are considered a guide to risk-taking sentiment.
Hope during the Biden Administration
Optimism about the possibility of immediate delivery of some Covid-19 vaccines has been added. Furthermore, there are also expectations of more fiscal stimulus from the upcoming Biden administration. This is especially so after the weekly initial unemployment claims data on Wednesday.
The data showed that the unemployment rate is rising again. The Federal Reserve released the moment of its last monetary policy meeting held on Wednesday. It appears that they show Fed members debating various options on bond purchases to support the recovery.
One is the option to pivot to long-term securities purchases, which can put more pressure on the dollar market right now. That is done by keeping the long-term yields low. Elsewhere, Sterling remains bidding despite the possibility that the UK economy will shrink.
