EU Chief Negotiator Barnier "strongly opposed" to May's Chequers

EU Barnier comments to a German newspaper could put the Pound under strong selling pressure.
UK PM May's also unwilling to give up on Chequers plan suggests negotiations will soon come to a stalemate, again.

FXStreet Team FXStreet

The Sterling Pound could gap lower at the weekly opening after EU's Chief Negotiator, Michel Barnier, said that he is "strongly opposed" to UK PM May's proposal on future trade relation between the EU and the kingdom.

Speaking to a German newspaper, Barnier highlighted the lack of common ground between EU´s offer and the UK desire for "facilitated customs arrangements." Particularly he referred to the automaker's industry and advised EU car manufacturers to consider using fewer British-made parts.

His comments, came after UK PM May said that the government can achieve a "good deal for Britain" ruling out a second Brexit referendum. She also stated that she won't be pushed into compromises on her Chequers agreement that are not in the UK interest.

The GBP/USD pair surged last week to 1.3042, its highest since August 2, on the back of hopes the two economies may reach an agreement following encouraging comments from Barnier and UK's Raab. However, the positive sentiment faded at the end of the week, as Barnier also said that there are no plans to extend negotiations beyond October, and what is actually needed is a political decision.

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