The Brexit impasse continues as the week draws nearer to a close


The headlines from yesterday (⬆) continue to allude to the fact that negotiations are still going nowhere, with the latest on that being Tory MP, Andrew Bidgen, reportedly saying that the EU's demands on fisheries are "absurd".

So, what is the state of play right now?

To start of, Michel Barnier will be briefing EU fisheries ministers some time today and we'll see if there will be any leaks of a potential compromise or if Barnier is going to outline that talks are continuing to go nowhere on the key outstanding issue.

The next round of negotiations is then set to take place in London and the key thing to watch is whether or not Barnier will be in attendance as part of the team on the ground.

I reckon the EU could still play it down and put the blame on virus precaution, but it could still have the potential to come off wrongly since talks are likely to still be headed nowhere if Barnier isn't involved in the latest round of proceedings.

That's pretty much where we are at now when it comes to the Brexit saga.

As for the pound, it continues to brush aside all of the pessimism as traders are still taking a glass half-full approach for the most part.

However, gains are more limited closer to 1.3400 with buyers continuing to be tested at the 100-hour moving average (now at 1.3353) with a couple of light layers of support in between that and 1.3300. The 200-hour moving average sits at 1.3308.

So, those will be the key levels to define the range/bias in price action today.