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Sterling Sours As Another Day Passes With No Progress

FOREX

After starting the session holding its ground, GBP sank into the London close as markets looked skeptically at the odds of a near-term breakthrough in ongoing Brexit negotiations. With Barnier set to meet fishing minister earlier in the session, hopes were high that some sort of progress could be made before the weekend - but these hopes were soon dashed as reports suggested the UK had dismissed out of hand the EU's latest proposal on fisheries. GBP/USD briefly sank below the $1.33 handle, with GBP underperforming all others in G10.

Elsewhere, partial closures in the US sapped volumes and liquidity out of markets, prompting a general pullback in the USD, with antipodean currencies the main beneficiaries. AUD, NZD and EUR were the strongest on Friday, GBP, USD and CHF the weakest.

Focus in the coming week turns to MNI Chicago PMI, November job reports from the US & Canada and the RBA rate decision.

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