I love deadlines. I like the whooshing sound they make as they fly by. Douglas Adams, meet Brexit talks. Time is relative, so are deadlines. The Oct 15th deadline was a bargaining chip – talks are expected to continue for now despite ramping of no-deal preparations. The EU summit kicks off today with European leaders set to discuss progress on trade talks. So far there are no signs of a compromise leading to a breakthrough, though fears the UK would walk away from the talks today seem to have eased with negotiators adamant they can get a declaration in the next couple of weeks. I think we could easily see another month of toing and froing over the final sticking points around the level playing field, governance and fisheries. Bottom line, both sides want a deal and as far as sterling is concerned, it’s still a currency people want to own. Sensitivity around headlines is marked which makes it difficult to call where the price action is headed – for now GBPUSD is within its range of the last month and a half.
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