Pathway to a Brexit deal

Prime Minister Boris Johnson and Leo Varadkar said they could see a pathway to a possible Brexit deal after a last-ditch meeting aimed at paving a way for the UK to leave the EU in an orderly way.

“They agreed that they could see a pathway to a possible deal,” Johnson and Varadkar said in a joint statement. “Both continue to believe that a deal is in everybody’s interest. “They agreed to reflect further on their discussions and that officials would continue to engage intensively on them,”

EU officials are still sceptical about the chance of a deal. Most expect Johnson to be forced to accept a delay to Brexit, a step that could ultimately lead to either a reversal of the entire Brexit endeavour or a disorderly exit.

Although Boris has insisted since coming into power that Britain would leave the EU on the 31st October come what may, if no agreement is reached then the default will be to request more time after parliament passed a law saying we cannot leave without a deal.

With the uncertainty surrounding Brexit, UK data is showing the economy is now weaker than expected. Bank of England Governor Mark Carney said economic data published this morning reflected how underlying growth was a weaker than the central bank had expected.

“The underlying pace of growth is a bit softer than that, and today’s data… is consistent with that picture,” Carney said.

Carney has previously said he expects the BoE will need to cut interest rates if Britain’s economy is hit with the shock of a no-deal Brexit. Carney also sought to play down speculation about the possibility that he will stay on beyond his scheduled Jan. 31 departure date from the British central bank.

As a result of poor UK economic data and positive talks between Johnson and Varadkar we have seen GBP/EUR fluctuate over 1% today with highs of 1.1230 and lows of 1.1080. Tomorrow the UK has no economic data releases so all eyes will be on any Brexit development.