Brussels on Mussels – How EU-UK Fishing Talks could have Negative Impact on Pound
10 February 2020

Sterling Holds Firm...Just, As Trade Talk fears Continue to Limit Upside

Every headline tells a story and with the UK election done and dusted the EU-UK negotiations are taking up front page space. The latest problem to arrive in Boris Johnson's in-tray is the EU flexing its muscles  – and mussels – on post-Brexit access to UK fishing waters.

So having begun the new decade in a bullish mood following Johnson's surprising big-margin win, Sterling is losing momentum as Brexit rules the airwave. And this piece in the Telegraph catches the negative mood: Johnson's election mantra was 'Get Brexit Done' but the EU does not want its member states having less access to the UK territorial fishing waters with its chief negotiator Michel Barnier set on keeping the current parameters. 

The Sterling-Euro exchange rate is now at 1.1840 while the Sterling-Dollar rate is below 1.30 at 1.2940. Even before the fishing negotiations have actually started, the future is not so bright for the Pound. 

Says Privalgo's Will Stephenson "Right now, the market is in some ways back to pricing in negatives around Sterling that we saw dictate pricing the last two years, pricing in concerns around EU-UK trade talks identical to that of the 'no-deal' Brexit scenario seen last year"

"So far, trade negotiations have felt quite combative, and not focused on the considerable compromises that will have to be met at some point by both nations. With the way things are right now, a December 2020 exit that doesn’t involve a free trade agreement looks more and more likely"

"As the UK and the EU move forward with their new relationship and trade agreements, the currency will suffer in terms of volatility and negative sentiment if the partnership can’t get past an affection for some sort of ‘good old days."

Brussels on Mussels – How EU-UK Fishing Talks could have Negative Impact on Pound
10 February 2020

Sterling Holds Firm...Just, As Trade Talk fears Continue to Limit Upside

Every headline tells a story and with the UK election done and dusted the EU-UK negotiations are taking up front page space. The latest problem to arrive in Boris Johnson's in-tray is the EU flexing its muscles  – and mussels – on post-Brexit access to UK fishing waters.

So having begun the new decade in a bullish mood following Johnson's surprising big-margin win, Sterling is losing momentum as Brexit rules the airwave. And this piece in the Telegraph catches the negative mood: Johnson's election mantra was 'Get Brexit Done' but the EU does not want its member states having less access to the UK territorial fishing waters with its chief negotiator Michel Barnier set on keeping the current parameters. 

The Sterling-Euro exchange rate is now at 1.1840 while the Sterling-Dollar rate is below 1.30 at 1.2940. Even before the fishing negotiations have actually started, the future is not so bright for the Pound. 

Says Privalgo's Will Stephenson "Right now, the market is in some ways back to pricing in negatives around Sterling that we saw dictate pricing the last two years, pricing in concerns around EU-UK trade talks identical to that of the 'no-deal' Brexit scenario seen last year"

"So far, trade negotiations have felt quite combative, and not focused on the considerable compromises that will have to be met at some point by both nations. With the way things are right now, a December 2020 exit that doesn’t involve a free trade agreement looks more and more likely"

"As the UK and the EU move forward with their new relationship and trade agreements, the currency will suffer in terms of volatility and negative sentiment if the partnership can’t get past an affection for some sort of ‘good old days."

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