Donald Tusk is set to release his Brexit guidelines in which its widely expected to receive full blessing from most of the 27 member states. His tough approach to the Brexit will ensure all aspects of the EU’s principals are upheld, including free movement of people.
Reports suggest the UK will be offered a transitional deal on the basis that it maintains commitments to the EU budget, maintains free movement of people and must adhere to the ECJ – the European Court of Justice.
GBP/EUR unmoved by the news
The Pound has lost some ground this morning following a small drop in core consumer prices, which arguably will be welcomed by the Bank of England. There doesn’t appear to be much movement despite these tough guidelines.
It does however provide significant clarity as to how the negotiations will proceed, and markets will welcome the news of a transitional deal for Sterling.
Is Le Pen losing ground?
With the French elections now becoming a 4 horse race, Le Pen’s hopes of sealing the French elections have now become more difficult. The far left candidate Jean-Luc Mélenchon has stormed the polls in recent weeks and has even created a video game.
Are markets becoming more relaxed towards the elections? The Euro has not seen any significant weakness with just over 2 weeks before the first round.
Le Pen sparked outrage this week after she appeared to deny the French involvement in Vel d’Hiv, in which Jew’s were rounded up for detention in 1942.
Le Pen said in reference to the German order.
“I think France isn’t responsible for the Vel d’Hiv”
“I think that, in general, if there are people responsible, it is those who were in power at the time. It is not France”.
It’s unclear whether her comments were taken out of context, but a number of Jewish communities and the Israeli foreign ministry condemned the comments.
To what extent this could impact her odds of winning is yet to be seen, but markets appear to be relaxing towards her prospective victory.