GBP Extending Pullback Ahead of Another Weekend Deadline

After a particularly positive first half of the week, GBP is softer early Friday, extending the pullback that began in late US hours after Boris Johnson warned there was still a distinct possibility of No Deal should the EU not move further on rules surrounding fisheries post-transition. Betting markets have pared the implied odds of a trade deal being struck by the end of the year to 66%, from around 80% mid-week. GBP/USD has mirrored the sentiment, briefly showing below the $1.35 handle pre-NY hours.

The greenback trades somewhat firmer, with the dollar gaining against most others in G10, recovering from the Fed-induced weakness seen throughout the Thursday trading day.

Focus turns to Canadian retail sales, US leading index data and a speech from Fed's Brainard.