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Pessimistic Brexit Comments from the Irish Foreign Minister

The Brexit issue came back into spotlight in September, sending the GBP lower, as the coronavirus panic faded. The situation doesn’t seem favourable for a trade deal between the EU and UK, although there are hopes until the last minute. But, the Irish Foreign Minister Coveney poored cold water over those hopes, especially on the fishing issue, which will be a “big issue”, as Coveney puts it. These comments are negative for the GBP, and GBP/USD turned lower after them. if such comments keep coming, then the bearish trend will resume again in GBP/USD.

Comments by Irish foreign minister, Simon Coveney

  • UK stance on state aid in Brexit talks is ‘very problematic’
  • Level playing field is ‘really serious issue’
  • Barnier won’t enter tunnel without UK state aid move
  • Gap on fisheries is ‘really, really wide’
  • No back room talks about extending Brexit transition period
  • UK should not underestimate how strongly EU feels on fishing issue
  • Fishing is a big obstacle
  • A landing zone on fishing is hard to envisage
Those are not helpful comments to really feed Brexit optimism but the pound is keeping more steady for now. This has largely been the EU rhetoric for the past week now but the fact is that there hasn’t been any change to the tone whatsoever.
It could still mostly be posturing ahead of more talks this week and before the summit next week, but we’ll see. Coveney continues to believe that this will go to extra time as he says that an agreement on the above issues is needed in the ‘next month or so’.
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Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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