The UK Prime Minister & President of the European Commission Jean-Claude Juncker completed talks yesterday. Unfortunately, they appear to have resulted in little need for fanfare.
May traveled to Brussels once again in a bid to secure “legally binding changes” to the Irish backstop issue in the Brexit agreement.
May’s Brexit deal had been turned down by MPs in a parliamentary vote. However, she subsequently received backing to pursue specific amendments.
While May said the meeting with Juncker had been “constructive” it seems that Juncker’s prophecy when he told reporters that there would be “no breakthrough” in their talks, was correct.
Following the meeting, May told reporters that she’d “underlined the need for us to see legally-biding changes to the backstop which ensure it cannot be indefinite. That’s what is required if a deal is going to pass the House of Commons”.
May also added:
“We’ve agreed that work to find a solution will continue at pace, time is of the essence and its in both our interested that when the UK leaves the EU, it does so in an orderly way… And so, we’ve made progress, and the secretary of state for exiting the EU, the Brexit secretary, and the attorney general will be in Brussels tomorrow for further talks”.
Alternative Arrangements Discussed
The two released a joint statement following the meeting. In it, the leaders explained they had discussed the sort of guarantees which could be given to MPs to help assure them of the temporary nature of the backstop.
Furthermore, the pair talked about the “alternative arrangements” which could replace the backstop in the future. Both leaders have agreed to further talks before the end of the month.
For now, GBPUSD is holding above the 1.3004 resistance level which keeps the focus on an eventual further break higher. Bulls will be looking for a break of the 1.3304 Q3 2018 high next, en route to the completion of an ABCD pattern into the 1.3541 level. To the downside, support remains at the 1.2693 level.