After the EU summit on Friday, the Prime Minister said that there needed to be “fundamental change” before a Brexit deal can be reached and added that the UK is preparing for an ‘Australia style’ deal. Despite this negative rhetoric, the pound is strong against both the euro and the dollar this morning, perhaps on hopes that a deal can be reached.
This afternoon, Chief negotiators David Frost and Michel Barnier are expected to hold a video call to discuss the structure of upcoming talks. It’s thought that there could be a further four weeks of talks before the deal needs to be ratified in UK Parliament.
The government has said that UK businesses should start preparing now to avoid being ‘caught out’ when the UK’s trading relationship with the EU changes. However, there are still many unanswered questions about what the new relationship will look like.
This week, inflation rate figures for the UK will be released on Wednesday and Consumer Confidence data on Friday.
