Barnier highlights 'next few days'
Barnier told ambassadors today that a deal could be signed off in time if it were struck in the next few days, according to report citing people who attended the meeting.
He also tweeted this earlier today:
It is our responsibility to give the talks every chance of success. Never before has such a comprehensive agreement (trade, energy, fisheries,transport, police & judicial cooperation, etc) been negotiated so transparently and in such little time. The next few days are important, if an EU-UK deal is to be in place on 1 January 2021. Fair competition, and a sustainable solution for our fishermen and women, are key to reaching a deal.
A big question facing market participants is: What is the real deadline?
Barnier offered a hint at that, saying that even if they reach a deal at Christmastime there might be a short-term situation of no-deal Brexit until legislation was brought into effect.
To me, that means that even Christmas isn't a real deadline.
The good news is that there is some real progress as both sides appear to have found something of a framework for either side to re-level the playing field via tariffs if regulations diverge.
As for sterling, the reaction today has been positive. Cable has come down in the past few hours but that's a reflection of a broad rebound in the dollar and not a decline in GBP. However if 1.3300 breaks, technical sellers might step in:
