Britain and the European Union clashed on Thursday over a free trade agreement. UK gave up hope as Brussels deemed it “unlikely”.
On the last day of the Brexit negotiations traders are looking out for any headlines that may shine some light. Could Britain walk away from the European Union with a deal at the end of the year?
Media reports suggested the UK gave up hope on reaching a deal.
London said an agreement could still be reached in September. But both sides agreed on one thing – there had been no movement on the thorniest issues. Such issues include fair competition guarantees, the level playing field, fisheries.
Since Britain left the bloc in January, talks on the trade agreement and other ties have all but stalled. Each party accused the other of failing to compromise before a transition period runs out at the end of this year.
On the stimulus front, leading U.S. Senate Republicans and the White House late on Wednesday said they had hammered out agreements. The deal has been reached in principle on portions of a potential coronavirus-response bill. The lawmakers raced to pass legislation by the end of July.
Further, the tension between the US and China has reached a new front: consulates. The United States gave China until Friday to close its consulate in Houston following allegations of spying. China has vowed to respond.
START TRADINGForex – UK gave up hope for Brexit trade deal
Better-than-expected corporate earnings in Europe offset worries a sharp escalation in tensions between the United States and China.
The U.S. dollar hit four-month lows against a basket of peer currencies on Thursday. The dollar index hit its lowest since March 9 and has lost nearly 8% since its March 20 peak. It is down 1.5% year-to-date.
Against the safe haven Japanese yen, the dollar was flat at 107.15.
The euro was at $1.1581, just below a 21-month high hit earlier this week after EU leaders agreed a recovery fund.
The Australian dollar retreated from a 15-month peak to around $0.7128.
The New Zealand dollar was just below Wednesday’s six-month top of $0.6678.
Meanwhile, sterling fell versus the dollar and euro, as no-deal Brexit reports emerge. Worries around the Brexit transition period ending without any deal between Britain and the EU weigh.
Sterling stabilized above $1.27 on Thursday on the last day of the Brexit negotiations. The pound was down 0.1% at $1.2716 and down 0.2% versus the euro at 91.02.
Oil prices gave up earlier gains, with U.S. crude down slightly to $41.85 a barrel. The global benchmark Brent crude nine cents lower at $44.20 per barrel.
Gold prices rose 0.6% to $1,888 per ounce, a new nine-year peak, with prices up 24% on the year. Investors flocked to the safe-haven metal as they seek shelter from a possible rise in inflation following so much stimulus.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money