Boris Johnson to decide whether to walk or let the deadline pass

Boris Johnson to decide whether to walk or let the deadline pass, more volatility for GBP is expected. After Boris Johnson’s announcement, given the lack of progress made at the EU summit, British Prime Minister Johnson has stepped up his rhetoric by claiming the UK will not be able to make a decision in January. It is important to remember that Boris Johnson has not officially finished negotiations, talks will continue and both sides will have to offer a compromise on the agreement, but fears about the agreement will continue in the coming weeks.

Volatility seem to be on the cards for the pound, as everyone awaits for the PM to continue trade talks after not making significant progress at the EU summit. While Frost, the UK’s Brexit negotiator, said the EU was disappointed and surprised that the UK should make any concessions to the agreement. An agreement is still possible if both sides are in good faith, therefore Johnson can allow a self-imposed deadline, stressing that there is a deal to be done. Moreover, earlier this week the reports noted that David Frost told Boris Johnson that a deal was not impossible but time was running out, this is also supported by British Foreign Secretary Raab, who said the agreement is close. However, although the deadline expires at the end of the month, as highlighted this week, the blurred deadlines rarely go away, so negotiations could dissipate in November.

Mon
11:30 EUR ECB’s Mersch speech
12:00 USD Fed’s Chair Powell speech
12:40 EUR ECB’s President Lagarde speech
12:40 EUR ECB’s Lane speech
12:45 EUR ECB’s President Lagarde speech
14:05 GBP BoE’s Cunliffe
14:30 CAD Bank of Canada Business Outlook Survey
15:00 GBP BoE’s Cunliffe
15:45 USD Fed’s
16:00 EUR German Buba President Weidmann speech 21:00NZDNZIER Business Confidence
23:30 AUD RBA’s Kent speech

Tue
00:00 AUD HIA New Home Sales (MoM)(Aug)
00:30 AUD RBA Meeting Minutes
01:30 CNY PBoC Interest Rate Decision
06:00 EUR Producer Price Index (MoM)(Sep)

Wed
00:30 AUD Retail Sales s.a. (MoM)
01:30 JPY BoJ’s Sakurai speech
06:00 GBP Consumer Price Index (MoM)(Sep)
06:00 GBP Retail Price Index (YoY)(Sep)
06:00 GBP PPI Core Output (YoY) n.s.a (Sep)
06:00 GBP Consumer Price Index (YoY)(Sep)
06:00 GBP Core Consumer Price Index (YoY)(Sep)