Following talks this weekend EU representatives were informed that the UK was willing to make concessions to its Brexit proposal for the Northern Irish border.

Eurozone Economy contracting

Chief EU negotiator, Michel Barnier has stated however that there is a big gap to overcome regarding customs arrangements. Home office minister, Victoria Atkins said she is still of the belief a deal can be done before 31st October deadline.

She went on " In the last few days, we've seen a real shift in approach from the EU and in Ireland, in particular for which we're extremely grateful and appreciative.

“I think with the negotiations ongoing.... I'm an optimist."

The PM's official spokesman warned that “talks remain constructive, but there is still a lot of work to do.”

Both the UK and Brussels have said there is hope of a deal before the EU summit taking place on Thursday and Friday. If this does go ahead then the government will introduce a withdrawal agreement bill which will be voted on next Saturday at a parliamentary session.

The Queens Speech

The Queen delivered a speech yesterday revealing a summary of planned new laws. There were 26 new or returning bills. Over a third of these related to new arrangements after Britain’s departure from the EU.

Sajid Javid seems confident the UK will leave before the 31st October stating the first budget after Britain’s exit for Europe will be 6th November.

Following Boris Johnson and Leo Varadkar talks last week we saw Sterling strengthen against the majority of currencies. Varadkar stated discussions were positive and sufficient enough for negotiations to resume in Brussels.

Brexit talks ongoing

It was revealed a deal may not be as close as first thought. It has been released that Barnier would not accept a British proposal to track goods entering Northern Ireland to see whether they ended up in Ireland.

It has been reported that EU negotiators have softened their stance and that they are prepared to continue negotiating until tomorrow, the eve of the EU summit. This goes against what was said previously, that a deal must be presented a week in advance of the summit.

The Irish border, still remains a huge stumbling point for a deal to be agreed and until we have clarity it is likely the Pound will remain fragile.

Data Releases of Consequence

Today we will witness the release of UK unemployment and average earnings for the month of August. The unemployment rate is expected to remain the same as the previous month at 3.8% while average earnings is predicted to show a slight decline from 3.8% to 3.7 %. If figures land away from these expectations, we could see volatility.

We will also see the release of the German economic sentiment survey. As Germany is considered the engine room of the EU if there is a lack of optimism, we could see Euro weakness.

New Zealand Consumer Price Index (CPI) data is released today, it is a measure of inflation and can influence future monetary policy. There is expected to be a drop from 1.7% to 1.4%. If data lands away from the predictions, we could see movement in New Zealand Dollar value.

 

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