Draft Brexit document: EU-UK to commit to build on 'single customs territory' - Bloomberg

Dhwani Mehta FXStreet

According to a leaked draft Brexit document, as cited by Bloomberg, EU-UK is said to commit to build on ‘single customs territory’.

Additional Details:

Foresees equivalence for UK banks.

EU, UK to commit to 'deep' customs cooperation.

To commit to building on 'single customs territory'.

States determination to replace the backstop in the future.

EU is to recognize UK's independent trade policy.

EU-UK to considering linking UK Co2 market with EU ETS.

EU-UK to cite the scope and depth of ties may evolve over time.

EU-UK ties after Brexit transition period can be extended for up to one or to two years.

If post Brexit transition period is extended, Britain will continue paying to the EU budget.

EU-UK will aim to conclude a new agreement on fisheries by July 2020.

EU-UK will try to assess the equivalence of laws on financial services by July 2020.

UK commits to align with the EU rules on the trade of goods.

EU-UK to also consider technological solutions to prevent hard border on island of Ireland.

Draft EU-UK text on future ties.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD holds a constructive bullish tone above 1.3400 as UK political risk eases

The GBP/USD pair trades in positive territory around 1.3405 during the early European trading hours on Thursday. Fading political uncertainty in the United Kingdom provides some support to the British Pound against the US Dollar. Following the resignation of Keir Starmer in late June, UK political risk has eased significantly.

EUR/USD sticks to positive bias above 1.1400; Mideast tensions cap gains

The EUR/USD pair attracts some buyers for the second straight day, though it lacks follow-through and remains confined within the previous day's range during the Asian session on Thursday. Spot prices currently trade around the 1.1420 area, up less than 0.10% for the day, and remain at the mercy of the US Dollar price dynamics.

Gold sees more pain as Iran tensions revive inflation fears

Gold price reflects signs of softness on Thursday, trading 0.5% lower at around $4,056 during the Asian trading session. The precious metal is under pressure as Middle East hostilities have revived fears of high global inflation, a scenario that discourages major central banks from easing monetary conditions. This framework bodes well for interest-bearing assets, but diminishes the appeal of non-yielding assets, such as Gold.

Ripple and Stellar extend downside as weakening technicals

Ripple and Stellar extend losses on Thursday, correcting over 6% and 10%, respectively, so far this week. XRP falls below $1.090, while XLM posts a fifth consecutive day of correction and closes below key support levels.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.