European Council Demands Concessions As PM Johnson Mulls Abandoning Talks

Cable has shed a handful of pips so far amid lingering Brexit concerns, which applied pressure to the pair on Thursday. EU leaders are halfway through the European Council summit and they discussed future relations with the UK yesterday. In the conclusions from their meeting, they "called on the UK to make the necessary moves to make an agreement possible", drawing a pushback from the UK's chief negotiator Frost, who expressed disappointment. PM Johnson is expected to announce his response on Friday as he weighs whether to walk away from the negotiating table. Cll'r Merkel & EU chief negotiator Barnier sought to extend an olive branch to the UK, as Germany's leader cautiously expressed openness to compromise, while the EU's diplomat signalled readiness to continue talks.

• Elsewhere, UK gov't implemented a three-tier system, raising London restrictions to tier 2 from Saturday in a bid to stop the surge in new coronavirus cases. Local leaders in Manchester have openly opposed measures announced by Downing 10, demanding compensation for businesses and workers.
• GBP/USD sits at $1.2899, 11 pips worse off. Losses past Oct 14 low of $1.2863 would expose Oct 7 low of $1.2846. Conversely, a jump above Oct 12 high of $1.3083 would bring the 61.8% retracement of the Sep 1 - 23 sell-off at $1.3174 into play.
• There is little of note on the UK's economic calendar today, but its sovereign debt will be rated by Moody's.