Duelling Brexit Headlines Prompt GBP Yo-Yo

Sterling traded in a highly volatile fashion inside a range Thursday, as duelling Brexit headlines prompted a 150 pip range in GBP/USD. Hopes ran high for a post-transition period Brexit deal, as the FT reported that EU-UK negotiators were within sight of a 'landing zone' on state aid and the level playing field, with fisheries the only outstanding issue. This prompted a rally up to 1.2978, the highest since mid-September. These hopes were quickly dashed, however, as Reuters cited an EU official in saying there was "no sign" of a landing zone just yet. As a result, GBP is easily the poorest performer in G10 at the US close.

Elsewhere, markets were disappointed with Pelosi's pessimism over the prospects for a renewed bipartisan push for the HEROES act. The pain was most clearly felt in industrial metals and oil, both of which fell sharply during US hours, with both copper and oil down as much 5% on the day.

Focus Friday turns to the September Nonfarm Payrolls report, with the US seen adding 875k jobs over the month, dropping the unemployment rate by 0.2ppts. Australian retail sales and speeches from Fed's Kashkari & Harker and ECB's Holzmann, de Guindos and de Cos are also due.