- The financial markets are still pressured by Brexit uncertainty
- Theresa May is going to Strasbourg for face-to-face negotiations ahead of the vote
- There is no solution yet to the Irish border issue
- Barnier said that the EU is willing to give the UK the chance of a unilateral exit
According to the latest news, the UK Prime Minister Theresa May will fly this Monday to meet the EU’s Chief Negotiator Juncker in Strasbourg as Brexit talks intensify ahead of the vote tomorrow. Theresa May is still looking to reopen the withdrawal agreement and she also wants some changes to the Irish Backstop. There is no solution yet to the Irish border issue and Theresa May said that there was no progress last week. The EU Chief Negotiator Juncker repeated once again that the withdrawal deal is not open for renegotiations but the EU could make further offers to the UK. The latest talks between Juncker and Theresa May have been “constructive” and both sides will continue to explore options in a positive spirit. Some rumors also say that Theresa May should stand down after the local elections in May and let the next phase of Brexit negotiations be handled by a new Prime Minister. The UK Parliament will vote on the Brexit deal this Tuesday and the financial markets are still pressured by Brexit uncertainty.
Theresa May said that a no-deal Brexit would be a serious threat to the United Kingdom and this will certainly have a negative influence on the economy in Eurozone. The EU exit is the biggest economic risk the UK central bank faces currently and the damage to the UK economy has been already done over the past three years. The positive news is that EU’s Chief Negotiator Barnier said that the EU is willing to give the UK the chance of a unilateral exit. The influence of Brexit is still very strong and any positive news about Brexit would offer fresh support to the Pound. The BOE’s Governor Carney spoke recently about higher rates in the years ahead and he warned that Brexit uncertainty could delay the process. Carney warned that the market should not prepare for further rate hikes, either for rate cuts.