GBPUSD moves to new session highs

EU chief negotiator is on the wires with lots of comments on Brexit negotiations:

  • We are doing our best to reach a Brexit deal on orderly withdrawal
  • Much of withdrawal agreement already agreed with UK
  • 80-85% of Brexit treaty agreed
  • Need to agree on governance, geographical indications and above all on Irish border
  • UK will leave the single market and customs union
  • There must be checks on goods between EU and UK
  • We agree these cannot be performed that Irish/ Northern Irish border
  • EU is committed to respect UK constitutional integrity
  • UK is committed to respecting integrity of EU internal market including Ireland
  • EU proposes checks to be done at least intrusive way possible
  • Existing procedures will be developed
  • Only checks on GB/ Northern Ireland trade would be scanning barcodes on worries in transit, on ferries, in ports.
  • Checks would have to cover 100% of animals and animal products, not 10% as now
  • There will be administrative procedures that do not exist today on Northern Ireland/GB trade
  • Our challenge is to make sure their easy as possible, especially for small businesses
  • Understand these checks are politically sensitive but Brexit was Uks choice, not Eus
  • Our proposal limits itself to what is absolutely necessary to avoid a hard border
  • Proposal gives Northern Ireland benefits that no non-EU country enjoys
  • EU proposal is just a backstop
  • Only needed as EU/UK 3 terms will only be negotiated after Brexit
  • Some GB/Northern Ireland trade checks may not be needed
  • EU still open to keeping customs union with UK to eliminate many customs checks
  • EU ready to cooperate closely with UK on financial services, data protection
  • EU open to free trade area with UK
  • EU differs from UK free trade area proposal where it is not consistent with single market integrity
  • UK cannot have benefits of a single market membership à la carte
  • A deal is within reach by Wednesday, October 17
  • No reason not to deepen UK/EU future trade deal during future negotiations
  • cost of No-deal would be very high and it has never been among our scenarios
  • even with a deal, business will have to adapt
  • After Brexit, it won't be business as usual

The GBPUSD has moved to new session highs on the 80-85% comment. The pair reached a high of 1.32058. The high from September 26 comes in at 1.32175 from September 20 extends up to 1.32979