Prime Minister Boris Johnson told the European Union on Monday that the Brexit ball is in their court and that the bloc should now urgently discuss his proposal in detail for breaking the deadlock in talks ahead of Britain’s departure on 31st October. With just 24 days to go before the United Kingdom is due to leave the EU, both sides are positioning themselves to avoid blame for a delay or a disorderly no-deal Brexit.
EU leaders reacted coolly to Johnson’s last-ditch proposals to bridge the impasse, indicating just how far apart the two sides are over the first departure of a sovereign state from the EU, which was forged from Europe’s ruins after World War Two.
Johnson has repeatedly vowed that Britain will leave the bloc on 31st October and that he would rather be “dead in a ditch” than seek any further extension of the departure date. A law passed by his political opponents requires him to write to the EU requesting a delay if he has failed to agree a deal by 19th October, the day after an EU summit.
A Scottish court on Monday rejected a bid by campaigners seeking an order to force Johnson to ask for a Brexit delay, citing assurances given to the court by the government that it would comply with the law.
The dollar was little changed against a basket of currencies on Monday as traders awaited U.S.-China trade talks later in the week for clues to the state of the prolonged trade war between Washington and Beijing, even as chances of a deal appeared low.
Investors’ overall appetite for risk was weak on Monday after a report said that Chinese officials were reluctant to agree to U.S. President Donald Trump’s broad trade deal. Top-level U.S.-China trade talks are scheduled to resume next Thursday and Friday, when Chinese Vice Premier Liu He meets with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.
Investors also awaited the U.S. Federal Open Market Committee’s minutes from its September meeting, due on Wednesday, for clues to whether the Fed will cut rates at its October meeting, its third interest rate cut for the year.
13.30 – USD: Core PPI MoM; Forecast at 0.2% against previous of 0.3%
13.30 – USD: PPI MoM; Forecast same as previous at 0.1%