Down and out?

As all hopes seem to fade on a breakthrough Brexit deal, the UK’s Prime minister Boris Johnson has Scheduled an emergency meeting of Parliament for Saturday October 19th. The crisis meeting is set the day after Johnson returns from the EU summit with leaders in Brussels, giving the UK politicians the chance to debate a way of moving forward.

With only 12 days left before the country is due to leave the EU, a deal is looking unlikely. This Rare Saturday session is set to be tense as MP’s weigh up their options: delay Brexit, crash out without a deal, or trying to bring down the government.

In Brussels, talks are stuck and have now descended into a blame game between Johnson’s administration and the EU leaders. Neither of which have yet to formally pull out.

Angela Merkel has still not broken her code of silence after her now-famous phone call this morning with Johnson. Downing street have given their take on it, but the Germans have still not.

Angela Merkel’s chief spokesman, Steffen Seibert said to reporters in Berlin “We have no new position on Brexit, neither the chancellor nor the government. This is what we’ve always said. The government will work to find a solution until the last possible moment, so that we can have an orderly U.K. exit out of the EU and avoid the scenario of a no-deal or disorderly exit, because that is the worst-case scenario for all involved.”

Michel Barnier, the Chief Brexit negotiator for the EU said that a deal with the UK is “very difficult but possible” and that “The EU will remain calm, vigilant, respectful and constructive.” Brexit Secretary Stephen Barclay will travel to Brussels for talks with European Union chief negotiator Michel Barnier tomorrow.

With todays news we have not seen much movement in Pounds crosses. If talks break down in the next couple of days, the only real option for the UK will be to request for an extension. We could see some Pound strength if this happens. If we manage to stumble into a no deal exit, then expect the Pound to weaken dramatically.

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