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Cable Pares Gains After U.K. Dismisses Report of Compromise on Brexit Talks

imageForex5 hours ago (Jun 02, 2020 02:21PM ET)

(C) Reuters.

By Yasin Ebrahim – The pound eased from one-month highs against the dollar on Tuesday, after failing to break a key technical trading level after the U.K. dismissed reports that Prime Minister Boris Johnson was ready to compromise on key sticking points that have stifled progress in post-Brexit talks.

GBP/USD rose 0.34% to $1.2541, but had jumped as high as $1.2575, testing its 100-day moving average, a key technical level at around $1.2573.

The U.K. has expressed a desire to take control over access to its waters and fish when the transition period ends, rather stick with the EU’s Common Fisheries Policy, which set fishing quotas among EU member states.

The Prime Minister’s official spokesman reportedly said that reports suggesting the U.K. is ready to compromise on fisheries and level playing field rules was “wishful thinking by the EU.”

“We have always been clear there is no question of splitting the difference on level playing field and fish,” he added.

The remarks added to growing concerns over a lack of progress on negotiations so far, ahead of the fourth round of post-Brexit talks, which get underway today before both sides take a break to assess progress.

With the clock running down on the end of June deadline for U.K. to request an extension on trade talks of up to two years, many have warned the path ahead for sterling will likely be fraught with challenges amid a weaker economic backdrop.

Data on Tuesday showed a sharp fall in U.K. mortgage approvals in April, and house prices suffering the steepest monthly decline in 11 years.

“There are significant headwinds to demand in prospect–higher unemployment, falling wages and significant economic uncertainty,” HSBC said.

Cable Pares Gains After U.K. Dismisses Report of Compromise on Brexit Talks

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