Brexit update: EP will not now ratify a trade deal in 2020

Ross J Burland FXStreet

Sky News Europe Correspondent. Adam Parsons has tweeted that the Chair of UK Co-ordination group at the European Parliament has confirmed that they will not now ratify a trade deal in 2020.

This was a scenario explained in the following article:

Brexit update: EU and UK negotiating teams remain at loggerheads

Chair of UK Co-ordination group at European Parliament - confirms that EP will not now ratify a trade deal in 2020. https://t.co/5RiZUYBZPQ
— Adam Parsons (@adamparsons) December 20, 2020

Reuters has reported that a senior UK govt source said that Brexit talks are still difficult with significant still differences, but Brexit trade talks are set to continue Monday.

''UK continues to explore every route to a deal that is line with the UK's principles.''

Meanwhile, the United Kingdoms PM, Boris Johnson, will chair an emergency COBRA meeting later today.

GBP/USD implications

The Chart of the Week: No gift from Santa this year for GBP/USD bulls

The price of cable is expected to open with a large gap to the downside as follows:

Update: Opening prices right to the target

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD turns negative; slips back to 1.3530

GBP/USD comes under pressure and weakens toward the 1.3530 zone on Tuesday. Cable thus leaves behind two daily upticks in a row and retreats further from Monday’s multi-week tops past 1.3570 following humble gains in the Greenback and disheartening UK jobs data.

EUR/USD comes under pressure near 1.1570

EUR/USD could not sustain the earlier bullish attempt toward the proximity of 1.1600 the figure, coming under fresh downside pressure and revisiting the 1.1580-1.1570 band as the NA session draws to a close on Tuesday. The better tone in the US Dollar in the latter part of the day weighs on the pair amid steady volatility in the Middle East. Looking forward, the release of the FOMC Minutes takes centre stage on Wednesday.

Gold consolidates below $4,350; looks to FOMC Minutes for fresh impetus

Gold holds steady below $4,350, following the previous day's heavy losses, as traders await the release of FOMC Minutes for cues about the Fed's future policy path. In the meantime, the recent surge in US bond yields, bolstered by inflation fears stemming from rising oil prices, supports the US Dollar amid the Middle East crisis and should cap the non-yielding bullion.

Ethereum: Investors remain on the sidelines

Ethereum continued its consolidation pattern over the past week with several key on-chain and derivatives metrics indicating traders remain hesitant to return to the market. The holdings across several wallet cohorts remained largely unchanged over the past week. Wallets holding 10K-100K ETH, also classified as whales, saw modest inflows of only 10K ETH.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.