Back To The Negotiating Table

GBP/USD trades at $1.3135 after shedding 14 pips in early Asia-Pac trade, in a mild correction of yesterday's rally, driven by the news that the UK & EU agreed to restart and intensify Brexit talks. EU sherpas will arrive in London today to commence negotiations with the aim of striking a deal by mid-November. According to joint communique, both sides agreed to work out sticking points one by one and set up a small secretariat responsible for consolidating a draft agreement.

• UK government has introduced a finance bill outlining post-Brexit regulatory framework for the sector. The document would implement Basel III standards, ease the transition for lenders to stop using Libor and provide for financial-services access between mainland UK and Gibraltar.
• Further losses past Oct 14 low & key near-term support at $1.2863 would signal the resumption of bearish pressure. Meanwhile, a jump above Oct 21 high/61.8% retracement of the Sep 1 - 23 sell-off at $1.3171/74 would shift focus to former trendline support intersecting at $1.3210.
• Looking ahead, BoE's Bailey & Haldane are set to speak today, while UK retail sales, flash Markit PMIs & comments from BoE's Ramsden hit the wires on Friday. It goes without saying that any fallout from the revived Brexit talks will provide interest, going forward.