Analysts at Danske Bank note that, according to UK news, PM Boris Johnson intends to implement in law that the UK cannot extend the transition period.

• “This supports our view that the no-deal risk is still present as Boris Johnson will not exploit his huge majority to be flexible on the end-2020 deadline for negotiating a trade agreement with the EU. This new legislation will eliminate the option of extending the transition by two years.
• In fact, this may at the end of the day turn out to be pure political symbolism, as the law can always be amended, but it shows Johnson is intent on honouring the Tory manifesto commitment to terminate the transition in just over a year from now.”