UK: Phase 1 of the Brexit talks may come to a conclusion this week - ANZ

Analysts at ANZ suggest that the phase 1 of the Brexit talks may come to a conclusion this week and while markets have started to position for a breakthrough, Northern Ireland remains an issue.

Key Quotes

“The EU wants a written commitment that the UK won’t enforce a hard border; while Ireland also wants assurance that regulations between the two countries will be similar. Rather than the offer itself, however, the reaction of EU leaders (especially Ireland’s PM) will be critical. Should headlines suggest the EU is ready to give a green light to start the transition and trade talks, sentiment for sterling should turn very positive. That said uncertainty is high and risks relatively symmetric.”