MUFG Research discusses the latest Brexit trade deal developments.
"According to reports, a new UK proposal floated with the EU over the weekend on how to create a competitive level playing field might just break the deadlock...The EU has reportedly softened its earlier position where it demanded the right to take unilateral and automatic action to impose trade penalties if the UK didn’t follow EU standards. It now accepts that an adjustment," MUFG notes.
"The positive steps on the level the playing field have revived hopes that a last minute trade deal can be reached. In contrast, there appears to have been little progress on access to UK fishing water although it is seen as less of a hurdle to a deal than level playing field arrangements. The latest developments have supported our assumption that a last minute trade deal would be reached, but the risks remain high that efforts to reach a deal could still fail posing significant downside risks for the pound," MUFG adds.