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With Brexit talks on the agenda today, the European Commission official said in a regular briefing, “We are fully focused on making the most of this week’s round of talks. We share Prime Minister Johnson’s desire to reach an agreement quickly. We will do everything in our power to reach an agreement.”
He warned that a Brexit without a deal “will inevitably create barriers to trade and international exchange that do not exist today.” “Finally, I note that while we are determined to reach an agreement with the UK, the EU will be ready – in the absence of a deal scenario – to trade with the UK on WTO terms from January 1, 2021. “- said the representative.
Separately, the President of the Commission, Ursula von der Leyen, tweeted: “I believe the British government will comply with the Withdrawal Agreement, a commitment under international law and a prerequisite for any future partnership. The Ireland/Northern Ireland Protocol is essential to safeguard peace and stability on the island, as well as the integrity of the single market. ”
Dollar Eyes ECB For Next Move
The fate of the dollar may largely depend on an ECB press conference later this week as traders want to know how nervous ECB members are about the euro exchange rate.
The market remains calm today and trading in the US and Canada may remain sluggish ahead. The sterling is generally lower on Brexit news, but losses are limited so far. The Canadian dollar has been weakened slightly by oil prices but has been very resilient so far. On the other hand, the dollar and the Australian are more stable.
UK Prime Minister Boris Johnson is reportedly ready to set an October 15 deadline for a deal with the EU following the transition to Brexit. Or the UK and the EU must admit that there will be no free trade agreement and “move on.” The absence of a deal would mean “having a trade agreement with the EU similar to the Australian one” using WTO protocols, and “that would be a good result” for the country.
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