Capstone Online CFD Trading: British and European trade talks ＂heavy tasks＂, the pound market is fleeting!
2019-12-18 11:15 from：CAPSTONE author：Jack
Capstone Online CFD Trading: After the British "Double 12" election, Prime Minister Johnson is stepping up and leading Britain to leave the European Union in January 2020. According to overseas media reports, Johnson will use the Conservatives ’advantage in the British House of Commons to pass legislation to prevent the extension of the Brexit transition period and seek to reach a new trade agreement with the EU by the end of 2020.
It is reported that if Britain can successfully leave the EU on January 31, 2020, Britain and Europe will enter a transition period after Brexit. During the period, the United Kingdom nominally withdrew from the European Union, but still enjoyed EU member state treatment in all other aspects. During this time, Britain and Europe will work hard to reach a new trade agreement. After winning a majority in the House of Commons, Johnson said he would take bold action, use his control of parliament, and pass legislation to ban the extension of the Brexit transition period beyond 2020.
Goodwin, chief British economist at Oxford Economics Research Institute, said that there is greater uncertainty about future negotiations on Britain-Europe relations. Johnson has repeatedly promised not to extend the transition period beyond December 31, 2020, but it is extremely rare to move so quickly to complete negotiations on a trade agreement.
In response, Barnier, the EU ’s chief representative in charge of Brexit negotiations, has warned that 11 months is not enough to reach a comprehensive trade agreement. The EU also insists that the EU will not sign a trade agreement with a neighboring country with strong economic strength without practical provisions to ensure fair competition. It is reported that EU requirements for the UK will focus on environmental, labor standards and state aid regulations to ensure that the UK cannot provide products to the EU single market at unfair low prices. More news pointed out that EU officials are considering extending an olive branch to the British side and proactively proposed to extend the transition period to reduce the price paid by the British side in exchange for Johnson for the cabinet to agree to the extension.
Affected by this, during the trading stage of the European stock market on the 17th, the exchange rate of the pound against the US dollar fell sharply, with intraday losses exceeding 1.3%. Just last Friday, the pound-dollar exchange rate rose to 1.3514, as the Conservative victory in the British election, which stimulated market optimism that the Brexit deadlock will be resolved quickly.
In addition, a spokesman for British Prime Minister Johnson said on the 17th that the British government plans to submit a Brexit bill to Parliament on December 20. British Cabinet Secretary Michael said that the top priority of the Johnson administration is to achieve Britain's departure from the European Union before January 31 next year, while ensuring that a new trade agreement is reached with the EU before the end of next year.
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