UK/US Trade Talks Begin (Remotely!)

<h2>First Round Talks Underway</h2>
<p>In a sign that countries are beginning to look beyond the current COVID-19 situation and begin focusing on resources on other issues once again, the US/UK trade talks got underway this week. The talks, which have begun remotely between the UK’s international trade secretary Liz Truss and the US trade representative Robert Lighthizer is aimed at establishing the terms of UK/US trade in a post-Brexit world. The initial round of talks is slated to last a fortnight, with further talks scheduled every six weeks.</p>
<p>The US and UK already trade roughly £220 billion worth of goods and services, however, up until this point, the terms of this trade relationship have been largely dictated by EU regulations. With the UK due to have left the EU’s custom bloc by the end of this year, the UK is now hoping to create a more beneficial arrangement with the US, which has long promised that the UK will be “front of the pack” for a trade deal. The US current applies annual levies of around £450 million to UK goods which the UK will be keen to see reduced.</p>
<h2>Hurdles &amp; Challenges</h2>
<p>However, despite an eagerness on behalf of the leaders of both nations to agree a deal, extending their famous “special relationship”, there are some hurdles which need to be overcome. The US, for one, wants Britain to step up its purchases of US agricultural products. There has been a great deal of opposition to US products (especially meat), given the high levels of GMO contained in chicken and beef there.</p>
<h2>COVID Recovery Key</h2>
<p>However, given the widespread unemployment that has occurred as a result of COVID-19, along with reduced outlooks for quickly it will take economies to recover, the US is likely to be even more enthusiastic in its demands. This is especially true considering that Trump is up for re-election this year and will want to take some quick wins out of these trade talks to help seduce voters.</p>
<p>With this in mind, the UK will likely find itself under a great deal of pressure, especially as it is simultaneously running trade talks with the EU, aimed at delivering a deal by the end of the year. There had been speculation that the timing of the US talks was meant to act as a motivating force to achieve a greater level of compromise from the EU, though this remains to be seen.</p>
<p>The pace and health of these negotiations, both with the EU and the US, will also depend greatly on how quickly the economy bounces back from the current dirge and also, whether we see a more deadly second outbreak of the virus as some experts are warning. In such circumstances, talks are likely to find themselves being put o the back-burner once more.</p>
<h2>Technical Views</h2>
<p><strong>BOEING (Bearish below 141.59)</strong></p>
<p>From a technical viewpoint. The heavy sell-off seen over March has staled for now though, so too has the recovery off the lows. Price has settled into a descending triangle formation, underpinned by the 120.06 support. If this level breaks, the 88.94 lows will be the next region to watch to the downside. Bulls will need to see price break above the 141.59 monthly pivot (and triangle resistance) to alleviate downside pressure.</p>
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