News of UK’s planned legislation has irritated those in EU circles – BBC reporter

Anil Panchal FXStreet

With the plethora of Brexit negative signals from the UK, as conveyed by the Financial Times and the Sunday Times, markets awaited the European Union’s (EU) reaction to the UK PM Boris Johnson’s comments increasing the odds of a no-deal Brexit. In an attempt to entertain the readers, BBC’s Katya Adler came out with the tweets while relying on her sources.

Also read: Brexit: trade talks on knife-edge, sterling vulnerable to start the week

Key tweets

Much like with David Frost’s interview today in @MailonSunday this evening’s news that the government is planning domestic legislation that would undermine parts of the Withdrawal Agreement incl Irish Protocol, now has EU figures asking “Who is this news aimed at?” /1
— katya adler (@BBCkatyaadler) September 6, 2020

Both the interview and news of the planned legislation has irritated those in EU circles I’ve spoken to BUT they also wonder if the forthright Frost interview, the legislation leak and the PM’s statement that no deal is also a good option for the UK isn’t actually directed /2
— katya adler (@BBCkatyaadler) September 6, 2020

More at a domestic audience.. specifically at ardent Brexiters, including backbench Tory MPs unhappy with government handling of exams and more this summer and worried government might be tempted to make concessions to EU to secure a trade deal /3
— katya adler (@BBCkatyaadler) September 6, 2020

Because, EU contacts tell me, if tonight’s news of the planned legislation was aimed at EU as a negotiating tactic in trade talks, then they say, it was a very bad tactic as it only succeeds in getting EU backs up, whatever the detail of the planned legislation turns out to be /4
— katya adler (@BBCkatyaadler) September 6, 2020

FX implications

Considering the mixed response of the bloc leaders, as per the tweets, GBP/USD recovers from the intraday low of 1.3239 to 1.3255 by the press time.

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.

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