The 31st January Brexit, did not include the trade relations that will stand from 2021. The last time Boris Johnson or EU representatives referred to the negotiations, market participants sent the GBP lower, as fears for a default WTO based trade relation intensified. Today, David Frost, UK’s chief Brexit negotiator, will address Brussels and a similar GBP weakening scenario is probable. UK is claiming that the state aid, tax and standards offered at the EU-Korea, EU-Japan and EU-Canada trade deals, where more favorable, that the standards offered to UK.
EU foreign ministers are discussing over Libya and what should be done to enforce the arms embargo deal. The US reached a deal with the Taliban to start a seven-day truce in Afghanistan.
Macro releases: Earlier today, Japan reported a staggering -1.6% GDP contraction for 4Q19. It remains to be seen if the decided fiscal boost will be enough to respond to the significantly decreased consumption (due to the October’s sales tax increase) and softer global demand. China reported lower foreign direct investments. No other significant release is expected in the today’s economic calendar.
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