# First deadlock, then hope – the Brexit negotiation saga continues Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-10-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Brexit Sparks Hope for UK Trade Deal Meta Description: Sterling bulls quick to rejoice as market reacts to EU draft paper, showing a glimmer of hope for UK trade talks despite Brexit uncertainties. URL: https://financedigest.com/first-deadlock-then-hope-the-brexit-negotiation-saga-continueshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd191017-6-1736843365222-compressed.jpg) - **Brexit repeatedly shocking exchange rates (easyMarkets)** - **Leaked document signals hope for UK trade deal** - **Sterling bulls quick to rejoice at the hint of good news** Just like life, the currency [market is a roller](https://www.financedigest.com/vertical-roller-mill-market-to-surge-at-a-robust-pace-in-terms-of-revenue-over-2026.html "Vertical Roller Mill Market to Surge at a Robust Pace In Terms Of Revenue Over 2026") coaster. Take what happened on 12 October with the Brexit talks. First in the afternoon we had [doom and gloom](https://www.financedigest.com/its-not-all-gloom-and-doom-at-the-moment.html "It’s not all gloom and doom at the moment") and then a few hours later we had hope. ![Brexit negotiations](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2-2-1736843365184-compressed.jpg) In all divorces, one of the key areas that most lawyers will lock horns over is money. And the Brexit negotiations are proving to be no different. Michel Barnier, the EU’s chief negotiator, said that there was a “deadlock” over the UK’s so-called divorce settlement. He also said that the lack of progress on this matter was “disturbing”. The UK was hoping that it would make some headway and at least agree to start talks on a future [trade deal](https://www.financedigest.com/exclusive-indian-car-makers-propose-tax-cut-on-imports-in-trade-deal-with-britain.html "Exclusive-Indian car makers propose tax cut on imports in trade deal with Britain") before the crucial EU summit on 19-20 October. However, this has yet to happen. In fact, MrBarnier has said that he felt he was not in the position to recommend to the European Council to start [discussions on the “future](https://www.financedigest.com/ngunu-tiny-discusses-how-covid-19-has-changed-the-future-of-impact-investment.html "N’Gunu Tiny discusses how COVID-19 has changed the future of impact investment") relationship. **“With March 2019 fast approaching the lack of progress and the increased chances of the UK getting no deal sent shivers down the spines of sterling bulls with GBP crashing against both the [USD and the Euro. The GBP/USD had fallen down to the 1.31310 levels and the EUR/GBP had risen to around](https://www.financedigest.com/supercapacitor-market-size-to-worth-around-usd-5979-67-million-by-2026-tmr.html "Supercapacitor Market Size to Worth around USD 5,979.67 Million by 2026 – TMR") 0.90184.”** **James Trescothick, Senior Global Strategist,** [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001uTy1SDgY4KzH6aHsIOJCkLQi9vvp9A9nUhguarn_yJwrF1H0V-uA8itfhg_PKCbmKfm3XsK3cyLLTGvzL-Kgq4jf4QTSQvo7DFzNc_JBO0LDxGisREDqZWjZ_A-iJujMYIK3ejkXMQPdB2bb37WcLfGw2mbkygou869wkSmbupWB1R6Jd9gdIA==&c=t8Qv9GSGzTWi6cLr8OJ1w9qZsu92UAJawgX1PD5CpkJSR8ruWaZZcg==&ch=_5GfvfC0KF4j19MpQT7dOVUGuDOq54ZDM3dlozycNO2RKQLg1wk7rA==) Meanwhile, a leaked internal draft document hinted that the 27 European Union countries should prepare to [discuss trade](https://www.financedigest.com/russias-putin-indias-modi-to-discuss-trade-food-supplies-on-friday.html "Russia’s Putin, India’s Modi to discuss trade, food supplies on Friday") amongst themselves, which will pave the way to start negotiating trade talks with the UK Government in December. The paper underlined MrBarnier’s earlier comments about a lack of progress, but also mentioned there had been [developments on some key](https://www.financedigest.com/automotive-mems-sensor-market-key-manufacturers-development-trends-and-competitive-analysis-2028.html "Automotive MEMS Sensor Market Key Manufacturers, Development Trends and Competitive Analysis 2028") areas, which would please many. Though this draft can at any stage be revised, it does show a tiny a bit of hope that a [deal could be made before the UK’s official](https://www.financedigest.com/u-n-expects-ukraine-russia-grain-deal-to-be-implemented-in-a-few-weeks-officials.html "U.N. expects Ukraine-Russia grain deal to be implemented in a few weeks -officials") exit. The market reacted swiftly to the news. **“Sterling bulls rejoiced. GBP/USD skyrocketed back above 1.32 reversing its previous losses of the day and at the time of writing is currently [trading](https://www.financedigest.com/indias-carmakers-back-zero-duty-on-limited-british-imports-under-trade-deal-sources.html "India’s carmakers back zero duty on limited British imports under trade deal – sources") around 1.3264. The EUR/GBP did the opposite and crashed back down, falling below 0.9000 levels to trade around 0.8925. What a difference a few hours make!”** **James Trescothick, Senior Global Strategist,** [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001uTy1SDgY4KzH6aHsIOJCkLQi9vvp9A9nUhguarn_yJwrF1H0V-uA8itfhg_PKCbmKfm3XsK3cyLLTGvzL-Kgq4jf4QTSQvo7DFzNc_JBO0LDxGisREDqZWjZ_A-iJujMYIK3ejkXMQPdB2bb37WcLfGw2mbkygou869wkSmbupWB1R6Jd9gdIA==&c=t8Qv9GSGzTWi6cLr8OJ1w9qZsu92UAJawgX1PD5CpkJSR8ruWaZZcg==&ch=_5GfvfC0KF4j19MpQT7dOVUGuDOq54ZDM3dlozycNO2RKQLg1wk7rA==) When Theresa May announced that Britain would honour its financial commitments to the EU, there was the belief that the fifth round of [talks would finally bring some much needed clarity that a deal](https://www.financedigest.com/sabadell-in-talks-with-worldline-nexi-and-fiserv-for-payments-deal-sources.html "Sabadell in talks with Worldline, Nexi and Fiserv for payments deal -sources") could indeed be made in time. Initially it looked like that the EU and UK were getting nowhere, but this leak has shown there could be a bit of light at the end of the tunnel. **_“We are still very much in unknown territory, but one thing that is mostly likely certain is that we will continue to get ups and downs with the Brexit roller-coaster.”_** **James Trescothick, Senior Global Strategist,** [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001uTy1SDgY4KzH6aHsIOJCkLQi9vvp9A9nUhguarn_yJwrF1H0V-uA8itfhg_PKCbmKfm3XsK3cyLLTGvzL-Kgq4jf4QTSQvo7DFzNc_JBO0LDxGisREDqZWjZ_A-iJujMYIK3ejkXMQPdB2bb37WcLfGw2mbkygou869wkSmbupWB1R6Jd9gdIA==&c=t8Qv9GSGzTWi6cLr8OJ1w9qZsu92UAJawgX1PD5CpkJSR8ruWaZZcg==&ch=_5GfvfC0KF4j19MpQT7dOVUGuDOq54ZDM3dlozycNO2RKQLg1wk7rA==) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---