Today, we’re going to look at the progress of Brexit, as trade talks get ever closer. We’ll also go over all of the most important trading events that are coming up this week. So, let’s get to it!
EU drafts post-Brexit trade deal
So, the first die has been cast, it seems! The EU has come up with the first draft of their post-Brexit trade deal proposal, which covers lots of important areas, like security, foreign policy and fisheries. Because fish are important. Fact.
But, the UK isn’t going to like it.
The 441-page draft legal text (wow!), was sent to the 27 EU states on Thursday night, ahead of being presented to the UK next week. It’s pretty much believed that the UK will outright reject most of it because it appears to tack a little too close to EU law.
It’s already been a bit of an uphill struggle to get to this point, as negotiating teams are struggling to meet up and actually negotiate due to the mass travel bans and lockdowns designed to contain the spread of coronavirus (COVID-19). Skype, anyone?
What does this mean, then?
Well, it’s an interesting first move by the EU. Some might say it was ‘bold’, others would say it was very foolish. UK PM, BoJo previously said that if an agreement is not reached by the end of this year, the UK will leave without one and go on to World Trade Organisation rules.
But that would effectively constitute a no-deal Brexit, which could have a devastating impact on the British economy.
It’s a tightrope and neither side will want to slip up. It’s going to be fascinating to watch, and even more so to trade.
Mouse finger at the ready…
Things to look out for this week!
We’ve been busy putting our heads together and have come up with all of the most important trading events, i.e. those with the highest potential for volatility, that are due to happen over the coming week. Why? Because we’re nice like that!
● We kick off the week in the land of Oz on Tuesday, with the RBA Meeting minutes (AUD). Then, we’re in the UK just in time to catch the ILO Unemployment Rate (GBP). We finish our world-tour-Tuesday with the release of the US Census Bureau’s Retail Sales Control Group (USD).
● On Wednesday, The Bank of Canada releases their Consumer Price Index YoY (CAD). Next up, we have the Fed’s Interest Rate Decision (USD) (which could be very interesting!). Finally, we’ll zip off to New Zealand to hear their QoQ GDP (NZD).
● Thursday kicks off with some important Aussie (un)employment figures (AUD). Then, we’ll hear from the Bank of Japan re. interest rates! (JPY).
● The hottest events of the week reach their conclusion on Friday with China’s Interest Rate Decision (CNY) and we’ll also get a glance at Canada’s Retail Sales figures (MoM) (CAD).
It’s worth noting that the world is a bit of a topsy-turvy place right now (if you didn’t already notice) so, there’s a good chance that some of these things will get postponed or cancelled or shifted somewhere or the other. Information is going to come at you thick and fast this week, so head down, ears open!
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The Contentworks team