Comments by UK Brexit negotiating chief, David Frost
- There is clearly a good understanding between negotiators
- But major obstacle is the EU's insistence of a so-called "level playing field"
- Need a change in EU approach for next round of negotiations
- Intend to make public draft legal texts next week
There you have it. This was very much expected as the two sides continue to maintain their red lines when approaching talks, but the headline is dragging the pound to its lows for the day currently. Cable now at 1.2176, down by about 0.4%.
Frost also says that until the EU recongises that the "level playing field" proposal needs to be removed, only then they can make some progress towards the agreement.
Yeah, that is almost certainly not going to happen in the final round of talks on 1 June.
Keep an eye out on cable as it approaches key support near 1.2166 with EUR/GBP also on the verge of a breakout to the upside potentially:
