EU Brexit draft guidelines now drifting out on BBG and Rtrs 7 March
- future trade agreement with UK on fin serv should take into account that Britain would be a third country, not share common rules
A key area of difference still in Brexit talks with UK still adamant fin servs can be included in final deal. EU still saying no.
- there should be in EU-UK security
- futures ties with UK in aviation to ensure connectivity would require an air transport agreement combined with safety agreement
- future trades in goods with Britain should be subject to zero tariffs
- reciprocal access to fishing and resources should be maintained
- future trade deal should address an appropriate customs cooperation, preserving regulatory autonomy of the parties
Still some serious areas of contention but it certainly seems as though we're heading for some form of Brexit-lite which might make common sense but isn't going to please the hard-line Leavers.
Donald Tusk is due to deliver the guidelines in a speech later today. A copy of the draft you can can read here meanwhile
GBPUSD 1.3859 on the back foot still but with dip demand, option interest and GBPJPY supply capping rallies all in play.
