Brexit Update: EU may slow down trade deal to the end of December

It seems that Brussels is targeting the postponement of the deadline for the Brexit talks. Currently, the deadline is set for October, but as long as we do not have a Brexit deal yet, the two sides will convene a summit that is expected to extend the deadline for a one-month deal.

At this point, in view of delays and lack of deal, traders and investors continue to accumulate "The Worst Case Scenario," namely Hard Brexit. This is mainly a sale of GBP, while the FTSE100 remains close to the top.

The talks between London and Brussels were resumed on Tuesday, but even Michel Barnier's representative expressed fears that they are more likely to fail to finish in time for a summit scheduled for October.

It is a fact that we are increasingly confronted with rumors that negotiations can continue until the end of the year, leaving too little time for ratification of the agreements before the date of the actual Brexit in March 2019.

The European leaders' meeting, scheduled for 18-19 October, is seen as a crucial moment for the Brexit agreement, giving enough time to the Member States and the European Parliament to ratify it.

Such a delay in the Brexit deal will further excite investors, and they will continue to accrue "The Worst Case Scenario". Given the rumors, I expect the GBP trend to keep down, and a deal for a possible Soft Brexit will lead to massive purchases of the British currency.

Hard/Soft Brexit, what does it mean, what to expect and who will win?

Source: Reuters

Photo: pixabay.com

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