In the Asian session on Monday (December 14), sterling/DOLLAR maintained a strong trend, the day’s gains are still more than 90 points. The pound surged as much as 160 points against the dollar on Monday as Britain and the European Union agreed over the weekend to continue negotiations on a deal to leave the European Union. Investors will continue to keep an eye on the latest developments in the Brexit negotiations during the day. In addition to brexit developments, investors will also be keeping their eyes on the big news on the US election today. The electoral College will vote on December 14 to decide who will be the next president of the United States.
Britain and the EU had another make-or-break moment over the weekend, but there was no breakthrough and no collapse. As negotiations on the trade agreement continued, both sides expressed a responsibility to try again and agreed to extend the talks. The news sent the Pound soaring in Asia on Monday.
After the latest round of difficult negotiations failed to reach an agreement, British Prime Minister Boris Johnson and European Commission President Jeroen von der Leyen agreed in a telephone conversation on December 13 local time to extend the brexit trade talks. It follows a decision by The UK and the EU to set December 13 as the deadline for trade talks to leave the EU. From a market point of view, the fact that the Brexit trade talks resumed after they closed last weekend was positive, with the expansion of negotiations indicating a willingness on both sides to avoid an orderly Brexit.
Johnson and Von der Leyen discussed the major sticking points that remain unresolved during Sunday’s telephone talks on a trade deal with the EU. But in the end the two men agreed to let negotiators from both sides continue to negotiate in Brussels to see if a deal could be reached. In a joint statement, Mr Johnson and Mr Von Der Leyen said the two sides were “responsible in deciding to go further at this stage”.
The news sent the pound as high as $1.3384 in early Asian trading on Monday, up 160 points from Friday’s close, and it is now trading around $1.3320.
Both Britain and the EU would face World Trade Organisation trade terms, the EU would lose all access to British waters for fishing, and the number of British sailors stationed in British waters would increase if a no-deal brexit happened. The December 31 deadline is a hard line for both parties and is not something they can easily move.
European Commission President Oleksiy von der Leyen said December 13 that her call with Johnson had been constructive and meaningful, and that they had discussed several major issues that had not yet been resolved. Despite repeated missed deadlines for negotiations, both sides agreed that it was responsible to give more time for negotiations.
Mr Johnson struck a cautious tone, saying the gap between the two sides remained wide and that Britain should prepare for a possible no-deal brexit by the December 31 deadline. But he also made clear that the British delegation would not walk away easily and reiterated that they would open the door to a deal if the other side wanted to. Mr Johnson also stressed that The UK would be as creative as possible, confirming that he had sought to re-engage directly with Paris and Berlin but had been rebuffed by Brussels. A few days earlier, Mr Johnson had said it was “very, very likely” that Britain would exit the transition without agreement.
Both sides have made progress on British fishing and business competition, but the main obstacle remains unsurpassable, which is that the UK remains tough on compliance with any EU rules and regulations. According to reports in the British media over the weekend, this makes the regulation of the Brexit deal a major area of concern.
Both Britain and the EU have ordered their negotiating delegations back to work after agreeing to an extension of the talks. “Our negotiating team has been working around the clock in recent days and we have authorized them to continue negotiations to see if an agreement can be reached at a later stage,” Von Der Leyen said in a video posted on Twitter. Eu negotiator Michel Barnier and his British counterpart, David Frost, will remain in Brussels this week for talks after holding talks over the weekend.
Simon Coveney, the Irish foreign minister, wrote on Twitter: “Even in the latter stages of Brexit, it’s always a tense moment to allow negotiators to move forward. The joint statement on brexit negotiations is a good sign. It’s obviously going to be very difficult to reach an agreement, but it could happen.”
Some analysts have warned that sterling’s rally may not last because Britain and the EU remain at odds and there is still a risk of disruption to trade and business without a deal. The officials, some of whom have worked 100 hours over the past week, will resume talks in Brussels on Monday morning local time.
Junichi Ishikawa, senior currency strategist at IG Securities, said: “Sterling is only higher for the time being, but it is still unclear whether a no-deal scenario can be avoided.”
According to a report by the Sunday Times on December 13, Britain’s supermarkets have been stocking up on food and other goods in preparation for a no-deal Exit from the European Union after senior British officials warned that negotiations over the country’s future relationship with the European Union were at an impasse.
Without a deal, uK-EU cross-channel trade will revert to WTO rules, tariffs will raise prices and create a lot of paperwork for importers, and failure to negotiate will poison Relations between London and the African continent for years to come, according to a new UK report. Mr Johnson said: “Either way, I believe the UK will do very, very well.”
The US Electoral College votes today
US President Donald Trump has vowed that he and his campaign “will press ahead” with a legal challenge to the November election results, despite the Fact that the Electoral College votes on December 14, Fox News reported on December 13.
Texas’s annulment lawsuit against four battleground states — Pennsylvania, Georgia, Michigan and Wisconsin — was rejected by the US Supreme Court on December 11, local time.
Trump said on fox News’ Fox and Friends on The morning of December 13 that his legal team will continue to challenge the election results despite the Supreme Court’s dismissal of a lawsuit brought by Texas against several swing states. “No, it’s not over,” Trump said. We will move forward. We have a lot of district cases, we have won in Pennsylvania, Michigan, Georgia, and we have ongoing cases in Wisconsin.”
Asked about Monday’s electoral College vote, Mr. Trump acknowledged that he faced a time crunch. Mr Trump stressed that the campaign would move as fast as possible. “I don’t know, we’re going to do everything we can to speed it up, but that’s it,” Mr Trump said. They give us very little time.”
“We’ve caught them with a lot of illegal facts, but no one believes them,” Trump said. “There were even dead votes in the process. There were thousands of votes cast illegally.” Mr Trump said it was a “rigged election”. Mr Trump said he feared the US had an “illegitimate president” because of election fraud. These election frauds make the United States look like a “third world country.”
Asked if he would attend Biden’s inauguration, Trump did not respond. “I don’t want to talk about it,” he said.
With all 50 STATES and the District of Columbia having confirmed the results of the 2020 election, Biden and Trump are projected to receive 306 and 232 votes, respectively, against a threshold of 270 to win.
The 538 electors will cast their votes at the December 14 meeting of the Electoral College, based on the results of state elections. On January 6, the new U.S. Congress convenes a joint session of the House and Senate to count the electoral votes and declare the winner of the presidential election.
Usually, electors from each state cast their votes for the candidate who wins the popular vote in that state. But it’s not a hard and fast rule. If an elector votes differently from the state, as happened in the 2016 election, that elector is called a “faithless elector.”