Swirling Sterling as News of Brexit Progress Rebuffed

Reports over the weekend tended to suggest that some furtive progress had been made between EU and UK negotiators, particularly on the topic of fisheries, which gave GBP a relatively solid start to the session Monday. This swiftly reversed in early European hours however, with GBP dropping sharply as all positive headlines were firmly denied by both parties. Negotiators meet again today, with UK PM Johnson & EU's von der Leyen also speaking in the evening. An EU Senior Diplomat summarises: "we are at a make it or break it moment".

GBP/USD weakness sees the pair trade well below the 1.33 handle, shedding close to 2 cents on the day. First support sits at 1.3197, the 50% retracement of the November - December rally.

Safe haven currencies outperform, with JPY, CHF as well as the USD all trading well.

There are no notable speakers or datapoints due for the rest of the session, with most CB members beginning their preparation work for upcoming central bank meetings. The Fed are now in their media blackout period.