Pound rises against euro and dollar as Brexit talks resume

EU chief negotiator Michel Barnier will meet his UK counterpart David Frost for the seventh round of talks

Michel Barnier and David Frost will meet today

POOL/AFP via Getty Images

18 August 2020

The pound shot higher against the euro and dollar today as Brexit talks resumed in Brussels with the UK hoping to secure a trade deal with the EU next month.

EU chief negotiator Michel Barnier will meet his UK counterpart David Frost for the seventh round of talks.

While hopes are that talks will be constructive there are still deep divisions over competition rules, fishing rights and how a deal would be enforced.

The UK has ruled out extending the December deadline to reach an agreement.

Both sides want some sort of an agreement by October at the latest so a deal can be ratified before the current post-Brexit transition period ends at the end of this year.

Prime Minister Boris Johnson’s spokesman said last night that Britain still believes a deal can be reached in September.

Britain left the EU in January and is in a transition period - due to end on December 31 - during which the country is still in the bloc’s single market and customs union. The transition period will finish at the end of 2020 whether or not a trade deal has been reached.

Against the dollar the pound was up 0.5% at $1.13169, while against the euro the pound added 0.3% at €1.106.

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