And another twist in the Brexit saga

Published date: 16/10/2019

Headlines just out suggest that talks between the UK and EU over finding a deal before the end of the week have now collapsed amid a lack of movement on the part of the UK.  These are said to be related to conditions being insisted on by the DUP, and as we suggested, these were always going to be a potential stumbling block given their insistence that they remain part of the UK customs union.  

The deal was said to have agreed on a hard border down the Irish sea for a period of time, and naturally, it was going to be a mountain to climb in persuading Northern Ireland representatives to agree to this caveat.  

Once again, GBP takes a hit, with Cable hit down to 1.2670 or so.  This was after a tentative move back into the mid 1.2700's as traders believe that even in the event of a no-deal, a delay may be the only likely solution given the parliamentary vote in favour of this in early September.  

EUR/GBP has again made a charge higher towards 0.8700, tipping the figure level, but failing to get any real traction up here in order to make a clean break through.


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