DAVY VIEW

EU/UK trade negotiations added to sterling’s volatility last week, with conciliatory comments from Michel Barnier helping sentiment. However, Ireland’s EU Commissioner Phil Hogan struck a more combative tone over the weekend, insisting that the EU will expect the UK to move on key stumbling blocks this week — level playing field provisions, fisheries and the role of the EU Court of Justice. Meanwhile, the UK Services PMI suggested activity is slowly returning as the economy started to reopen in June.