Crunch time for Brexit Talks
Yesterday saw Sterling make significant gains against the Canadian Dollar following news of a potential Brexit deal. GBP/CAD hit the highest levels since June, at one point reaching the high 1.68s.
There has been optimism from both the UK and Brussels that a deal could be on the cards. There is no official news that a deal has been struck, but reports suggest both sides are working on the legal text of the document.
Time is running out
A deal is meant to be on the table by tomorrow when the EU summit is set to begin so there is the possibility of high volatility during trading today. The EU have been pushing for various concessions and the pressure is on Boris.
Even if the deal is deemed feasible it must still go through the House of Commons and the DUP could be a stumbling block.
JP Morgan has commented “For the first time our economists now believe a negotiated Brexit within a matter of weeks is now the single most likely path ahead”. JP Morgan have shifted their expectations for a negotiated Brexit up to 50%, a further extension to 45% and a no deal Brexit at 5%.
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