Disagreements in the Brexit negotiations put pressure on the British pound
The EU and the UK can’t agree on a number of key issues, which threatens the successful resolution of the second phase of the Brexit talks. This was reported in The Wall Street Journal. The second stage of the talks is devoted to the conditions for cooperation between the EU and Great Britain during the transition period. This is very necessary to adapt the economies of both sides to separate existence.
The head of the European side negotiators Michel Barnier noted there were significant differences in the negotiations. If they won’t reach an agreement then the transition period may be impossible. Great Britain rejects the EU's requirement to obey all EU laws during the transitional period. In turn, Brussels doesn’t agree with London's intentions to restrict the rights of EU citizens resided in the UK immediately after Brexit. In addition, the British side is outraged by the EU threats to close free access to European markets for Great Britain if the UK doesn’t comply with the agreements during the transition period.
After Barnier's speech the rate of the GB pound to the US dollar fell to the lowest point in three weeks. Investor’s worries intensified after Best for Britain Group research platform reporting. The company's analysts have calculated Britain would lose $348 billion over 15 years as a result of Brexit, if London can’t make a trade deal with Brussels.