According to the latest headlines carried by the Nikkei Asian Review, Japan and the UK could agree on a trade deal as soon as this Friday.
British cheese will be guaranteed tariff equal to European preferential treatment, the Japanese daily reported.
On Monday, a Downing Street official said, “We have reached a consensus in many elements of the deal, including digital data and financial services that goes beyond the EU-Japan trade deal. We still wish to reach a formal agreement by the end of this month. Many major elements of the deal have been agreed.”
British Trade Secretary Liz Truss seeks to wrap up trade deals before exiting the post-Brexit transition period on 31 December. The sticking point between both the trade negotiators remains the reduction of tariffs on British agricultural exports to Japan.
Market reaction
GBP/USD is trading choppy so far in the European trading session, with the upside capped by 1.3165 while the buyers continue to find support at 1.3125. The above headlines failed to impress the GBP bulls.
USD/JPY remains pressure around 106.30 amid broad risk-aversion and ahead of the key US macro data.
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