MPs Told To Prepare For Brexit Deal Vote, But Sources Downplay Fisheries Breakthrough

GBP crosses posted a leg higher in the London evening as UK PM Johnson made a fresh offer on fishing rights in a bid to break the deadlock in Brexit talks. A BBG source report suggested that London was ready to allow EU fisheries to retain 2/3 of their catch in UK waters, provided that Brussels makes concessions in other areas. This allowed cable to trim losses, but it still finished down on the day.

• Sterling has been under some light pressure this morning, with the news re: UK offer on fishing rights already priced in. The Telegraph reported that UK MPs were told to be ready to vote on a potential trade deal on Wednesday next week. However, the article also cited an EU source noting that "it's still a no from us" re: the UK's offer, with a UK gov't source downplaying the BBG piece. Separately, sources told MNI that "the UK has moved a long way towards EU demands on fisheries (...) although Brussels is expected to hold out for further concessions," adding that the UK proposal may fuel appetite of some member states for more concessions.
• Meanwhile, concern over the spread of a new coronavirus strain in the UK continues to linger, with Hong Kong moving to ban flights from the country.
• GBP/USD has shed 16 pips and sits at $1.3448. Below Monday's low of $1.3188 would expose Dec 11 low & key support at $1.3135. Bulls keep an eye on Dec 21 high of $1.3503, followed by Dec 17 high of $1.3624.
• EUR/GBP sits at GBP0.9101, 7 pips better off. Topside focus falls on Dec 21 high of GBP0.9218, a break here opens Dec 11 high of GBP0.9230. Bears look for a dip through Dec 21 low of GBP0.9073, ahead of the 20-EMA at GBP0.9046.
• As a reminder, the UK reports final Q3 GDP figures later today.