New Brexit minister giving it a go
The new Brexit Secretary Dominic Raab is on the wires saying:
- Much progress has been made in Brexit talks
- Hopes to make for the progress in today's talks
Meanwhile EUs Barnier says:
- Eu/Britain must finalize which all agreements, not there yet
- close partnership on security more important than ever
Their meeting comes on the back of the European Commission warning the EU countried to prepare for a no-deal Brexit. Possible consequences according to the warning include disruption to the aviation industry and goods from the UK being subject to custom checks.
Meanwhile, the UK was stepping up preparations for there "no deal" outcome. They will be publishing advice for businesses on how to cope with disruptions shortly.
BOE Governor Carney warned PM May of the implications of a no-deal and said, the BOE might be forced to cut rates in response to a "no-deal". The BOE is expected to raise rates by 0.25% at their August meeting (perhaps to cut later). The probability is at 82% for a hike currently.
The quagmire gets deeper and deeper but there is more calm as well. One has to wonder if it is the calm before the next storm or does the cards start falling into place.
The GBPUSD is down sharply today, mainly on the back of a series of weak data (CPI yesterday and Retail sales today). The pair moved below a lower trend line on the hourly chart and failed but has not been able to take back the low from yesterday at 1.3009.
