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British and European Union officials resume talks

• Posted by currencies in Bremain, Brexit, Currency, Dollar, Economy, EUR, GBP, No Deal, Sterling, UK, Uncategorised
• October 16, 2019
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British and European Union officials resumed talks to clinch a Brexit deal today just a few hours after late-night negotiations wound up, but it was far from clear they would reach an agreement before a leaders’ summit on Thursday.

Officials involved in the complex divorce between the world’s fifth-largest economy and its biggest trading bloc said differences over the terms of the split from the 27 other member states had narrowed significantly.

But a small Northern Irish party that support Britain’s Conservative minority government said further work was required to get a deal through.

If an agreement is not ready for the Brussels summit, British Prime Minister Boris Johnson will almost certainly have to postpone Britain’s exit again. That would be the third delay since the June 2016 referendum vote to quit the EU.

Sterling fell from five-month highs against the euro and dollar this morning, with talks to secure a Brexit deal expected to go down to the wire before a European Union summit.

There is a sense that we are moving towards a deal and the market is covering its shorts and justifiably so,” said Neil Mellor, senior currency analyst at BNY Mellon, referring to investor bets on sterling weakness. “But I would be cautious in chasing sterling higher, especially against the euro.”