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.

GBP/USD clings to daily gains near 1.3350

GBP/USD holds just in positive territory around 1.3350 on Friday as the Greenback keeps a vacillating price action. With Fed rate hike expectations easing and US markets closed for the Independence Day holiday, Cable remains on track to post solid weekly gains.

EUR/USD remains sidelined around 1.1440

EUR/USD holds on to its recent gains and consolidates around 1.1440 at the end of the week as the US Dollar lacks clear direction. In the meantime, trading conditions remain subdued, with volatility constrained by the closure of US markets for the Independence Day holiday.

Gold flirts with two-week highs, targets $4,200

Gold extends its recovery for a third straight day, advancing toward the $4,200 mark per troy ounce on Friday. The precious metal looks set to snap a four-week losing streak as softer-than-expected June US NFP data prompt investors to scale back expectations of further Fed tightening.

Crypto Today: Bitcoin, Ethereum, XRP advance amid renewed capital inflows

Bitcoin maintains its upward momentum, holding above the $61,000 mark at the time of writing on Friday. Major altcoins such as Ethereum and Ripple are also posting gains, signaling a modest uptick in market sentiment and renewed risk appetite among investors.

The Iran war failed to trigger a recession. Can the US economy keep defying expectations?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.