Sterling Sags as Yet Another Deadline Looms

Following the lack of any material breakthrough over last night's dinner between the UK PM & EU's von der Leyen, GBP is the poorest performing currency in G10 as the market re-focuses on the next deadline of Sunday evening, at which time leaders on both sides will have to reach a decision over whether trade talks will continue or not, leaving a No Deal end to the transition period a very real prospect.

While GBP is weaker, it still trades north of the Monday lows of 1.3225, which should provide solid support going forward.

Antipodean currencies outperform, with AUD, NZD higher against most others. JPY, USD trade on the backfoot after a solid Tuesday showing.

Focus turns to the ECB rate decision, at which the central bank are seen recalibrating their policy toolkit.