Brexit: Britain and EU 'will rip each other apart' in trade talks – The Guardian

Anil Panchal FXStreet

While depending upon the comments from French foreign minister Jean-Yves Le Drian, The Guardian came out with the Brexit-negative news on Sunday. The French diplomat is cited turning down the hopes of a Brexit deal between the UK and the EU while speaking at the Munich Security Forum.

Key quotes

French foreign minister says it will be hard for the UK to strike a deal by end of the year given differences

‘I think on trade issues and the mechanism for future relations, which we are going to start on, we are going to rip each other apart.’

He added that on his desk in his office he had massive files showing the issues of contention between the UK and France, including over fishing rights.

'Let us hope that it is done as quickly as possible even if there are many subjects and that we have substantial points to manage,' said Le Drian. 'I have one in particular (...) which is the question of fish'.

FX implications

The news joins the weekend headlines from The Telegraph, suggesting the UK to refuse to abide by EU rules on tax and workers' rights while flashing a negative signal for the British pound. With this, the GBP/USD pair trades mildly weaker to 1.3040 by the press time of early Monday morning in Asia.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.