EU non-plussed

  • Only option for Brexit deal before October 31 is return to N.Ireland-only backstop, otherwise extension is likely (GBP up a few ticks on extension idea)
  • if this is final UK Brexit plan, it won't work. -would then move to discussing extension of deadline
  • Not clear if UK PM Johnson positioning himself for blame-game over failed negotiations
  • time -limit to backstop impossible under Brexit proposal, as reported by media: Merkel and Macron would not bully Varadkar into it.
  • UK Brexit proposal, as reported by media, would effectively erect Irish border

GBPUSD now hovering at daily lows of 1.2230. The word from the EU sources that stands out is 'extension'. An extension is GBOP positive, BUT will BOJO go for one or stick to hie promise of 'we leave October 31, do or die'. The EU throw the ball back to Johnson.

Brexit EU Boris