Phase 2 of Brexit Talks could prove problematic (Daniel Johnson)

Brexit Negotiations

It looks as thought the next round of Brexit talks could be problematic which does not bode well for the pound. It seems Brussels have been making contingency plans fro a “no deal” scenario due to the possibility of UK firms losing out.

In a letter to Theresa May, Brexit Secretary, David Davis has warned that firms may have to relocate to Europe or there is the risk of seeing contracts terminated.  The second phase of talks, covering transitional arrangements after the UK leaves and economic and security co-operation moving forward are due to begin towards the end of the month.  Theresa May has said it is right to plan for all possible outcomes, including no deal. She has however stated she is confident the UK and the EU can reach a deal on their post Brexit relations in time for the UK’s departure target. I am of the opinion this is optimistic and that their could be an extension.

There are British concerns about Brussels’ preparations for Brexit with David Davis suggesting they are “frequently damaging to UK interests.” In his letter to May Davis warned it was potentially discriminatory of EU agencies to have issued guidance to businesses stating that Britain would become a “third country” outside the EU without any reference to a future trade deal sought by both parties.

Davis warned that the EU’s current stance amounted to “potential breaches of the UK’s rights as a member state”, he also said he wants the European Commision’s Brexit task force to withdraw the statements so far in light of the deal reached in December to begin trade talks.

The comments from both sides does not bode well for Sterling, it may be wise to take advantage of current levels if you are a Euro buyer.

If you have a currency requirement I would b happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  dcj@currencies.co.uk.

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