- GBP lower across the board after conclusion of latest Brexit talks
- Barnier warns that talks are at a “deadlock”
- GBPJPY back at potentially key support from 146.90-147.70
The Pound has experienced a sharp move to the downside in the past couple of hours after the conclusion of the most recent Brexit negotiations between the UK and EU have failed to yield any tangible progress. The talks which ended today mark the 5th round of discussions on Article 50 and the EU Brexit chief, Michel Barnier, stated in a press conference which followed that negotiations have hit a “deadlock”. Barnier stated that he will not tell EU leaders that “sufficient progress” has been made to accelerate talks from the divorce terms to trade next week.
GBP has dropped lower against all of its peers today following the conclusion of the latest round of Brexit talks. Source: xStation
This is a blow for the UK who were hoping to advance to talks surrounding their future trading relationship with the EU post-Brexit as soon as possible but a failure to even agree on a so-called “divorce terms” relating to a settlement payment from the UK to the EU has remained a stumbling block. Unsurprisingly the difference on this matter comes from the UK angling for a lower payment whilst the EU believe they are entitled to a larger sum, and the difficulty with which any progress on the relatively simple matter has been made highlights the challenges ahead when attempting to reach a mutually agreeable solution on bigger matter such as trade.
GBPJPY has fallen to retest a potentially key level at 146.90-147.70 following the news. Source: xStation
One of the biggest market movements following the news has come in the GBPJPY which has tumbled around 100 pips since the comments from Mr. Barnier. In doing so the last two days of gains have been wiped out and the market is not far from turning negative on the week. The region from 146.90-147.70 had previously acted as resistance forming a triple top earlier in the year before the market surged higher following the most recent BoE meeting. Price fell back to test this level at the start of the week and buyers managed to successfully defend it, however the market is now retesting this region once more and a break below 146.90 would pave the way for a larger decline.
The fall in the pound has provided another boost to UK stocks with the UK100 hitting its highest level in 4 months today and trading not far from its all-time peak at 7587. Source: xStation