Brexit negotiations could go out beyond this week

With this week being a crucial one for Brexit talks, the UK has now hinted that the negotiations could actually stretch out beyond this week.

Both sides have struggled to overcome the key barriers to reaching a trade deal, with fisheries being a major hurdle.

Environment Secretary George Eustice said Sunday it would be possible to “squeeze out extra time” if the two sides were close to an agreement while Britain’s chief Brexit negotiator David Frost said on Sunday that he was heading back to Brussels for more discussions.

''The UK will not be changing its position in the coming talks,'' he said. 

However, he also explained that ''some progress in a positive direction in recent days,” has been made, but warned that they ''may not succeed.”

“This needs to be a week when things move, when we break through some of these difficult issues and get a resolution, and at least have some sort of headlines of an agreement,” he said.

“Otherwise it gets quite difficult and we do start to run out of time to implement it.”

“You can always squeeze out extra time if you need to -- if you are nearly there.”

In other recent headlines, Ireland’s Foreign Minister Simon Coveney told Sky News, "if UK imposes Internal Market Bill, we won't get a deal."

Market implications

The negotiations are set to miss another deadline of mid-November and continue into next week, ahead of a potentially crucial meeting of European leaders on Thursday.

However, in a more positive twist, Dominic Cummings is set to leave. 

"Certainly with Cummings leaving, as he's seen as one of the key people behind Brexit, it suggests Johnson could look at more compromise, which will be seen as pound positive. That's likely how the market is taking that news," said Lee Hardman, currency analyst at MUFG.

Meanwhile, the negotiations are set to miss another deadline of mid-November and continue into next week, ahead of a potentially crucial meeting of European leaders next Thursday. 

This should keep the pound under pressure on rallies.