UK Will Cut Tariffs, France and Germany Fight Pandemic Together
UK Will Cut Tariffs, France and Germany Fight Pandemic Together
As
the world's second epicenter after China, Europe, after months of hard
work, had survived the worst period of the epidemic and gradually began
to shift the focus to economic recovery. Large fluctuations are expected
in the European forex market.To get more news about WikiFX, you can visit wikifx official website.
With the alleviation of the coronavirus pandemic, the UK continues
the process of Brexit. A few days ago, the British government announced a
new post-Brexit tariff system to replace the EU's common external
tariffs. The British government stated that the new tariff system, known
as the “British Global Tariff”, will be formally implemented on January
1st, 2021. Compared with the EU's common external tariffs, the new
tariff will be simpler and cheaper. The new plan will see Britain's
tariffs reduced by 30 billion pounds after Brexit. The news shortly
propped up the pound to a new high in 4 trading days. However, the pound
is still under test. Bearish factors, such as bumpy progress of the
latest round of Brexit negotiations and the negative attitude of traders
towards the pound, continue to affect the currency.
On the other
hand, there have also been recent moves within the EU. In response to
the severe economic recession caused by the epidemic, leaders of France
and Germany supported the establishment of a European Union recovery
fund of €500 billion (US$ 543 billion), which will be supported by joint
borrowing from EU member states. Affected by this news, the euro once
rose to its highest level since May 4th and finally closed higher.
However, the plan still faces a blurry outlook as the final agreement
will require the support of all 27 member states, while Austria
immediately reaffirmed its objection to direct assistance. German
Chancellor Angela Merkel said that the current EU treaty remains
unchanged but may be changed in the future, which opens the door for
further fiscal integration, a positive factor for the euro.
While
countries began to restore their economies in the post-epidemic period,
the different situations they're facing may lead to an unbalanced
recovery pace, and there will still be greater uncertainties in forex
markets.
For more financial information and forex market updates, please visit WikiFX official website or download WikiFX App.
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