July 22, 2024

Brexit negotiations: May’s unpopular business-friendly scenario

LQDFX news blog: Brexit negotiations: May’s unpopular business-friendly scenario

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Less than seven months before the United Kingdom leaves the European Union the Brexit negotiations are intensifying. Prime Minister’s Brexit strategy is subject to harsh criticism both by friends and foes.

May’s intention is to protect cross-border trade with EU. This, according to the protesters of such plan will create a barrier for major trade reforms and the required independency.

May tried to mitigate all concerns by stating that there would be no compromise during the Brexit negotiations with the EU against UK’s interests. However, experts highlight that it is very difficult to find allies to support her strategy. If May loses the approval vote for the final agreement with the EU, then an early election is likely to happen.

NAFTA UPDATE:  NAFTA high-level negotiations between the USA and Canada were concluded on Friday without a specific outcome and without a deal. Although, Mexico, the third party gave its green light last Monday, the two other parties did not reach an agreement. The two trading partners were working against the clock ahead of Friday’s deadline to make the final arrangements. Time run out as the Mexican President had to sign the pact prior to leaving office in the end of November.

U.S. President said on Saturday there was no need to keep Canada in the NAFTA. Trump also warned Congress that he would terminate the trilateral pact altogether if they do not accept the US-Mexico bilateral agreement.


Forex Market

The Dollar traded higher against its major traded rivals amid trade concerns which turned traders’ interest to the greenback. It reached a one-week high.

The Australian Dollar rose by 0.25%.

The Yen and the Swiss Franc were boosted by such traders’ concerns.  However, the Swissy fall 0.2% against the euro

The Euro fell 0.1% against the US Dollar following publication of a survey which showed that the Euro zone Manufacturing growth index was the weakest in over two years.

The Sterling dropped ahead of headlines over unfavorable Brexit negotiations and weak PMI data. The pound edged down 0.4% against the US dollar and the single currency as well.

Oil inched up amid worries over supply ahead of US sanctions over Iran, although OPEC’s total supply is significantly higher.  Brent crude futures inched up 45 cents a barrel, while U.S. crude futures were up 10 cents from their last close.

Gold and silver prices dropped today due to a stronger dollar, but world trade worries limited losses.

Sources: Reuters, CNN money, BBC

PLEASE NOTE The information above is not investment advice.