The next fortnight will see UK PM Johnson kick start the trade talks with the EU and US – The Telegraph

Anil Panchal FXStreet

The Telegraph recently spread the news that the UK PM Boris Johnson is set to kick start trade talks with the US within the next two weeks, amid frustration in Number 10 at EU “time-wasting.”

Key quotes

The Prime Minister will next week (March 2) publish the Government’s ‘red lines’ for its US trade negotiations which are expected to push back on US demands for its drug and health firms to have greater access to the British market.

In an apparent nod to US concerns over Britain’s tough stance on food and agricultural standards, George Eustice, the Environment Secretary, on Sunday appeared to soften the UK’s resistance to importing American chemically-treated chicken.

FX implications

While the news should ideally help the GBP/USD pair, the buyers and the sellers are jostling around 1.2950 by the press time of early Monday as markets are more interested in coronavirus updates amid risk-off.

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.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.