7 Weeks Until (Another) Brexit Deadline.

Officials from the UK and EU will resume talks today to try and agree terms on their future relationship.  After a brief summer recess, face-to-face discussions will resume again in Brussels.  With only 7 weeks left until the scheduled conclusion of the negotiations on October 2nd, the pressure continues to mount on representatives from each side to find common ground.

The two key sticking points with negotiations remain what access EU vessels will have to U.K. fishing waters and how closely Britain will have to remain to the bloc’s rules to ensure a competitive playing field.

Despite the fact that neither side has made adequate concessions so far, Boris Johnston’s spokesperson Jamie Davies told reporters yesterday “our assessment is that a deal can still be reached in September.”

It has been reported this morning that Marks and Spencer is set to cut 7,000 jobs over the next three months.  Representatives from M&S have said that the coronavirus pandemic has made it clear that there had been a “material shift in trade.”

Retail industry commentator Richard Lim, of Retail Economics made some stark comments following the M&S announcement.  When discussing other companies in the sector he said, “The reality is that many more retailers will fail and the number of job losses will ramp up as government support is withdrawn.  This is the calm before the storm.”

Away from the UK, EUR/USD breached 1.19 in early trading this morning as the weak dollar trend continues.

With a relatively muted day on economic data releases the market will look for direction from other areas today.

Economic Calendar

Expected Previous
12:30 Building Permits (MoM)(Jul) 1.32 M 1.258 M
12:30 Housing Starts (MoM)(Jul) 1.24 M 1.186 M
12:30 Building Permits Change(Jul) - 3.5 %
12:30 Housing Starts Change(Jul) - 17.30%
12:55 Redbook Index (YoY)(Aug 14) - -3.40%
12:55 Redbook Index (MoM)(Aug 14) - 2.50%
20:30 API Weekly Crude Oil Stock(Aug 14) - -4.4 M
22:45 Producer Price Index - Output (QoQ)(Q2) - 0.10%
22:45 Producer Price Index - Input (QoQ)(Q2) - -0.30%
23:50 Adjusted Merchandise Trade Balance(Jul) - ¥-423.9 B
23:50 Machinery Orders (MoM)(Jun) 2% 1.70%
23:50 Merchandise Trade Balance Total(Jul) ¥-77.6 B ¥-268.8 B
23:50 Imports (YoY)(Jul) -22.80% -14.40%
23:50 Exports (YoY)(Jul) -21% -26.20%
23:50 Machinery Orders (YoY)(Jun) -17.60% -16.30%

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.