Britain and Europe are expected to fail to talk this week, with the pound diving in the short term

Negotiations between the EU and the UK are underway in London and are expected to continue until the end of the week, but the EU and the UK could miss the mid-November deadline to sign a trade deal, sources said on Wednesday afternoon. The euro then fell to 0.8864 against the pound, its lowest since June. The pound jumped 70 points against the dollar and recovered slightly after 15 minutes.

EU diplomats are expected to present the Brexit deal next week, with Brexit temporarily on the agenda for the Nov. 18 ambassadorial meeting, unless there is a breakthrough or an early break in the stalemate, sources said.

Earlier, on 9 November local time, the UK’s House of Lords voted overwhelmingly to remove two controversial clauses from the Internal Market Bill. The clauses allowed the Johnson government to unilaterally overturn parts of the Brexit agreement on Northern Ireland. But a British government spokesman said after the vote that the government would reinstate the clauses when the bill returns to the House of Commons for reconsideration. We hope that other countries recognize the need to protect the UK’s internal market, said Slack, spokesman for the British Prime Minister, speaking on the evening of 10 GMT.

On the other hand, UK Chancellor of the Exchequer Sunac said in the early morning of 10 GMT that we have made significant progress in the Brexit negotiations and an agreement can be reached, but the EU is more cautious, and a spokesman for the European Commission said in the evening of 10 GMT that the EU still needs clarification from the UK on possible future differences with EU rules.

It remains a mystery today whether the UK will be able to achieve a negotiated Brexit. The Daily Express correspondent in Brussels has collated some of the key developments in recent days in the Brexit negotiations.

1. As part of the governance negotiations, the EU has agreed to reduce the requirement for a “cross-retaliation” clause against the British economy. EU negotiator Barnier acknowledged that police and judicial cooperation should be exempt from cross-retaliation tactics in any post-Brexit trade and security agreement. “Cross-retaliation” is one of the principles of WTO dispute settlement, including “cross-sectoral retaliation” and “cross-agreement retaliation”, whereby a complainant may seek to suspend the same agreement or another applicable agreement. (a) Concessions or other obligations in other sectors under the Convention.
2. The EU plans a broad dispute settlement clause that would allow the two sides to “cross-check” the Brexit deal, for example by imposing tariffs on each other’s cars if arbitration of a dispute over fisheries fails. The U.K. is opposing this plan.
3. According to EU sources, British negotiators have accepted a dispute settlement for goods and services, but not a level playing field for the environment and fisheries. The EU wants fisheries, energy, goods, services, road and air transport to be included in the mechanism.
4. The UK has rejected a “binding for all areas” dispute settlement mechanism.

Forexlive commented on this, saying that agreement can only be achieved if everything is agreed. If both sides can slightly change their positions, the situation would be much better, but neither side has the will to take this step – at least not yet.