Monday, October 19, 2020

This Is The Cause Of The Turbulent Pound Trading Closing The Last Week

 Last weekend's trading showed price volatility for the Pound Sterling currency making investors anxious to control trading risk.

This is due to the development of Brexit negotiations with sentiment fluctuating in a short time. Expectations for negotiations to reach an agreement later turned negative when there was a signal that UK Prime Minister Boris Johnson was signaling for a Brexit no-deal option.

The door to post-Brexit trade talks between Britain and the European Union (EU) is still open, only if it focuses on the important things.

According to British Cabinet Minister Michael Gove, the EU needs to speed up negotiations and offer better terms.

Negotiations between the United Kingdom (UK) and the EU came to a halt following a disagreement over fisheries access and competition issues.

The EU insists it is ready to expedite negotiations but will not agree to the deal at all.

Several business organizations urged the UK government to focus on resolving differences with the EU as well as stating an agreement on a deal would help post-Covid recovery.

They warn that uncertainty over the UK's future trade relations with its largest market will affect business strengthening as many firms are affected by the coronavirus.

The British administration on Friday informed that formal negotiations on economic cooperation between the EU had ended and the UK would have to be prepared to trade with the EU starting January 1 without any specific agreement.

Without any agreement between the EU, the cost of importing and exporting UK goods is expected to increase.

EU Brexit chief negotiator Michel Barnier arrived in London to hold talks with his UK counterpart David Frost but the UK insisted the effort would be futile if the EU did not want to move from its current position.