Brexit Update: Brexit Talks To Continue

Brexit Update:
Brexit Talks To Continue

Previous Brexit
talks during the European Union (EU) economic summit ended with no significant
progress made. UK PM Boris Johnson said that the UK is prepared to leave the EU
without a deal unless the EU counterparts can make fundamental changes in their
approach.

PM Johnson had
made it clear to the EU to be serious during their intensive talks,
highlighting all important issues and bring the Brexit negotiations to a
conclusion once and for all. One of UK’s demands is that the EU needs to be
clear that any Brexit deal done with them must be consistent with the UK’s
status as an independent country.

During a
statement to the European Parliament on Wednesday, Michel Barnier acknowledged
UK’s demand, stating that any future agreement must be made in respect of two
things; the decision-making autonomy of the European Union, and the British
sovereignty. A deal is very much possible under the compromises made by both
sides.

Following
Barnier’s statement, UK negotiator David Frost welcome the EU counterparts to
London to intensify talks further this week. The pound surged to more than a
month high following the news report, as optimism towards a deal is back on the
table. However, throughout the Brexit process, it is known to the market that
both sides could shift their stance and tone altogether unexpectedly, keeping
cautious investors’ pessimism in place.

As talks are set
to resume this week, investors will focus mainly on whether both sides are able
to overcome the key issues (fisheries & level playing field), which had
long left Brexit negotiations in deadlock. Despite continuing the Brexit talks,
the UK is still at risk of leaving the bloc without any trade deal, potentially
jeopardizing both sides’ economic growth.