So much for the latest deadline
The two cardinal rules of trading:
- Never try to catch a falling knife
- Never believe a European deadline
Multiple reports over the weekend now say that talks could be extended beyond this week as progress continues, albeit at a slower pace than both sides would like.
The BBC says both sides now doubt a draft deal can be reached this week:
EU sources said there had been less progress in recent days on outstanding sticking points than they had hoped for and the "moment of truth" was nearing.
UK sources said there were still "quite big gaps" between the sides.
EU leaders are holding a virtual conference on Thursday and wanted a draft beforehand but that level playing field, fishing and enforcement remain sticking points -- the same three problems that have existed for months.
While a draft this week may be difficult, both sides will need to see progress on key issues. On Sunday, UK negotiator Frost said the UK "will not be changing" its position in the coming talks but noted "some progress."
The UK will leave the EU on December 31 but officials want at least a month to implement chances and approve the deals in EU and UK parliament.
Sterling had a solid week last week despite some ups and downs with the market leaning towards a deal.