The Brexit trade deal will face greater challenges as British Prime Minister Boris Johnson is now under intensive treatment for a coronavirus while other negotiators are either infected or quarantined.
The UK’s departure marked the beginning of a “transition period” in which the UK remained a member of the EU’s single market and began negotiations with the EU on a free trade deal. During the transitional period, the UK will not have the right to vote on EU matters, but will still be bound by EU rules.
If a trade deal is not reached by the end of 2020, the UK will leave the single market without a deal and will have to revert to WTO rules.
The pound dropped to just 1.221 from $ 1.230 against the news that Johnson had been admitted to intensive care.
The expectation is, after all, that the UK has a “strong” political institution and that can keep the pound stable without change.
Trader Georgi Bozhidarov