After British Prime Minister Boris Johnson warned late on Thursday that the “deal at the table” was not right, currency traders who had expected a deal to end before the end of the Brexit transition period on January 1 would have been watching the events with anxiety for the next 72 hours. “For the United Kingdom, Johnson traveled to Brussels on Wednesday for a dinner with European Commission President Ursula van der Ley, but the last attempt failed to create a turning point in the thorny issue of fisheries rights, government assistance and how to resolve disputes, officials said ahead of a mutually agreed deadline on Sunday. Returned to the table. ”Binary effect [deal or no-deal] Is on the edge of a knife, which will set the pound for an outsourced move once Brexit Saga reaches its conclusion, “said Fan, a market analyst at FXTM.” The pound has not yet surrendered. ” He added that earlier this month the pound was trading near 35.35 when the deal between the United Kingdom and its largest export market was high, with analysts warning that the currency could fall sharply below 20 1.20 if it became clear that a deal was no longer possible. The pound traded down 0.6% at 32 1.32 on Friday, with Jordan Rochester, a strategist adjusting the life of the UK trade outside the broader EU market of 450 million people, after the currency fell to 20 1.20. Nomura said it could happen. Falling below 1.20 in 2016 will push the pound to its weakest point after a shocking flash crash in late 2016 which will reduce the dramatic fall for a currency traded above 45 1.45 in the months leading up to the parallel June 2016 Brexit referendum. The weak pound will help British exporters cope with the Brexit shock, but it will also raise the price that British consumers pay for food and other imports. Time is very short now. Johnson has advised his negotiators to go “extra miles” to pursue a deal before Sunday, but negotiations have been established over several months over similar issues, and both sides appear to have dug in despite major economic costs – especially in the United Kingdom – but have not reached an agreement. Johnson said on Thursday he had instructed his cabinet to prepare for the failure of the talks and that the European Union had announced plans to open its borders to commercial aircraft, trains and lorries. Johnson and Van der Leyen said earlier this week that a decision would be made by the end of this week, but analysts commented that another extension was possible if significant progress was made. The immovable deadline is December 31, the expiration date of the arrangements that provided all trade and economic benefits of EU membership to the UK after its withdrawal in January 2020. The cost of Brexit Leaving the EU would be high costs for UK companies under any circumstances, but leaving without a new arrangement in trade would be disastrous. It would leave the UK to trade with its largest export market in terms of WTO terms, subject to tariffs and other restrictions on goods and services. Although the UK Office for Budget Responsibility (OBR), which makes economic forecasts for the government, could reach an agreement with London and Brussels in November, their new trade relationship is expected to result in a 4% longer production loss compared to the rest of Britain in the EU, but an additional 2% by 2021 or 20% OBR says it will cut production by $ 40 billion ($ 53 billion) and send more than 300,000 people to unemployment in the second half of next year. The United Kingdom is already facing its worst recession in more than 300 years as a result of the growing employment crisis and epidemic. Bank of England Governor Andrew Bailey said last month that the economic devastation caused by Brexit without any agreement would be worse than the epidemic in the long run. “It will take me a long time to call the real side of the economy,” he said in front of a parliamentary committee: Hannah Giadi and Julia Horowitz contributed to the reporting.
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