British Pound fell as much as 1.4% to $1.3258 on Monday morning, the largest decline in nearly 3 months after reports emerged that Brexit deal talks could collapse in the next few hours, reports Bloomberg. The yield on U.K. 10-year government bonds declined as much as six basis points to 0.29%.
- European Union’s chief negotiator Michel Barnier denied that the two sides were nearing a deal.
- U.K. has accepted the E.U.’s demand that quotas be negotiated annually but has rejected the bloc’s proposal that they be settled every 10 years-Barnier
- Irish Foreign Prime Minister hopes for a Brexit deal but has termed the situation “very difficult.”
- An E.U. diplomat has warned that negotiations are approaching a make-or-break moment even as he pointed that Brexit could be discussed in E.U. leaders’ summit later this week.
- British officials have warned that some progress must be made by the end of Monday if talks are to continue
- E.U. diplomats point out that it is up to the U.K. to choose whether it wants a deal or not
- Reports have emerged that U.K. Prime Minister Boris Johnson could walk away from the negotiations unless the E.U. abandons its “outrageous demands.”
- Brexit deal talks could run into next year, as “it’s more important to get the substance right than to get a deal quickly”- E.U. Diplomat.
- Controversial clauses that break the terms of the Withdrawal Agreement struck a year ago by the E.U. and U.K. will be put back in the bill-James Cleverly, U.K. Foreign Office Minister.
- Johnson and European Commission President Ursula von der Leyen will talk later this evening.
U.K. stocks are gaining as the pound loses. FTSE 100 is up 0.34%, GBPUSD is down 1.14%