GBP/CAD: Pound Plummets After UK Releases Negotiating Objectives

GBP/CAD is in free fall on Thursday, though it rallied in the morning. Currently, the pair is trading at 1.7166, down 0.22% as of 10:30 AM UTC.

UK Seeks “Regulatory Freedom” From EU

The UK has just released its strategy for the post-Brexit trade talks with the European bloc and it seems that the discrepancy between the two is getting wider. Prime Minister Boris Johnson is seeking a Canada-style trade agreement, suggesting that Britain wants to enjoy the benefits of the single market but without abiding to the European standards. European leaders have repeatedly rejected such a possibility, requiring the UK to accept a “level playing field.”

However, Johnson said that Britian would walk away from negotiations in June if no progress is registered, and prepare for a no-deal withdrawal from the transition period. The sterling reacted promptly to the news and made a u-turn after the morning bullishness. Many British firms are worried that they would lose their direct channels to the European markets.

Johnson wants “regulatory freedom” from the bloc and would not give his nod to any of Britain’s role for the European court of justice (ECJ) in dispute mechanisms.

Senior minister Michael Gove told the British parliament that the UK would not give up its sovereignty in exchange for the trade deal with the European bloc. He explained:

“At the end of the transition period on the 31st of December, the United Kindgom will fully recover its economic and political independence. We want the best possible trading relationship with the EU, but in pursuit of a deal we will not trade away our sovereignty.”

The trade talks start next Monday, but the two sides cannot even agree on the format of negotiations. Both teams have accused each other of failing to consider previous agreements.

2 More Cases Confirmed in UK

Besides the political tensions, the pound is under increased pressure after two more cases or coronavirus have been confirmed in the UK. Chief medical officer Chris Whitty said in a statement:

“The virus was passed on in Italy and Tenerife and the patients have been transferred to specialist NHS infection centres in Royal Liverpool Hospital and the Royal Free Hospital, London.”

Thus, the total number of cases in the UK rose to 15. The virus has infected over 80,000 people worldwide, killing more than 2,800.

Currencylive.com is a news site only and not a currency trading platform.

Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.