16:52 GMT +314 November 2019
Listen Live
    An English ten Pound note is seen in an illustration taken March 16, 2016

    Pound Rises After UK Reportedly Hammers Out Financial Service Deal With EU

    © REUTERS / Phil Noble/Illustration/File Photo
    Get short URL

    The Times reported that the EU and UK had reached a tentative deal on financial services as well as the exchange of data. The uncertainty surrounding the post-Brexit rules of the game has made British firms nervous ahead of the UK’s departure from the bloc, slated for March 2019.

    The UK pound edged up 0.6 percent against the US dollar following a report in The Times that the UK-EU negotiators have concluded a “tentative agreement on all aspects of a future partnership on services,” including the exchange of data. Sterling was trading at $1.2836 in Asia this morning, although the greenback remained near its 16-month high against a basket of its rivals due to favorable economic indicators from the US.

    The UK-EU deal on financial services would secure access to the bloc for the British financial sector. The outlet, citing a government source, said that the agreement would be finalized within three weeks.

    On October 31, Brexit Secretary Dominic Raab also told British lawmakers that the EU and the UK could reach a divorce deal by November 21. However, the official noted that the issue of the border between Northern Ireland and the Republic of Ireland was still a matter of concern.
    In a June 2016 referendum, the United Kingdom voted to leave the European Union. Although Brexit is scheduled for late March 2019, London and Brussels still cannot agree on a number of key issues, including the Irish border and customs arrangements, making a no-deal scenario a possibility.

    READ MORE: UK Chancellor Raises Brexit Funding to $2.5 Billion, Claims Austerity's No More

    This scenario deeply worries the UK financial sector. In July, Catherine McGuinness, the chairperson of the policy and resources committee of the City of London, said that the UK financial sector could lose up to 12,000 jobs due to Brexit because many financial companies were relocating their businesses to the European Union. According to Bank of England estimates, the City may lose as many as 5,000 jobs by late March 2019, when the United Kingdom is set to withdraw from the European Union.


    French Top Diplomat: Ball in UK’s Court as Brexit Talks Face ‘Moment of Truth’
    'Terror Will Win': David Davis Predicts Death of No-Deal Brexit - Reports
    UK Government Need to Keep EU Laws After Brexit to Protect Environment - Scholar
    No-Deal Brexit Would Put UK On Track for 'Long Recession' - Ratings Agency
    Firms Fleeing UK Amid Brexit Could Make Holland Financial Center - Regulator
    London Spent $1.9Mln in September on Brexit Consultations at US Firms - Reports
    financial center, finance, trading, currency, pound sterling, Brexit, Dominic Raab, United Kingdom
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik