The Pound was riding high alongside fellow majors against downtrodden Dollar before an update on Brexit trade talks from chief EU negotiator Barnier pulled the rug from Cable and pushed Eur/Gbp back above 0.9000. In short, far from entering the final phase towards a deal, the 2 sides remain apart on the 3 main sticking points and an agreement is still in the balance. Moreover, his advice to envoys also conceded that is uncertain whether the gaps can be bridged as EU officials are said to be getting increasingly nervous about the prospect of reaching an accord, albeit with one source in Brussels suggesting that a deal can still be done in December, next month or (presumably) later in 2021. Cable is now a full point down from best levels circa 1.3440 and the cross is hovering near the top of a 0.9045-0.8965 range.
Prior Chart:
Prior Chart: