Even after the latest round of negotiations between the EU and the United Kingdom in mid-July, there was little progress. According to EU chief negotiator Barnier, the deadlock even continued in crucial areas. These were the securing of a uniform framework for competition, above all through uniform standards and rules for state subsidies, as well as fishing rights in British territorial waters.
Brexit is far from over
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The European Recovery Fund has been taken by the market as a very positive sign on European solidarity. As a result, the chances of the eurozone breaking up are now reduced as the nations pull together to support the economy via the fund. There is a strong call option skew on heavy EURUSD options, so more EUR strength is anticipated by the market. The UK, on the other hand, is still struggling with Brexit negotiations.