Brexit showdown: all hopes now rest on Johnson and von der Leyen

ActivTrades: There is no break for the British pound on Tuesday either. British Prime Minister Boris Johnson will now meet the President of the EU Commission Ursula von der Leyen personally in Brussels.

After yesterday’s phone call between the two of them to further discuss the current blockade on the main points of dispute, this is now more or less the last chance to reach an agreement. The future relationship between the UK and the EU is now in the hands of both politicians.

Investors continue to expect that a Brexit agreement can be reached. However, this hope is likely to dissipate as soon as it becomes even rudimentary that there will be no breakthrough in the next two days either.

In the past few days the pound has suffered moderate losses as the markets have already started to price in a no-deal scenario in some cases in view of the sluggish negotiations.

If Boris Johnson and von der Leyen are unable to resolve the stalemate, sales pressure on the pound is likely to intensify.