By Yasin Ebrahim
Investing.com – The pound bottomed against the dollar on Friday and shrugged as UK-EU trade talks continued to sour after Prime Minister Boris Johnson’s spokesman said the talks were “over” it unless there was a fundamental change in the economic bloc.
GBP / USD rose 0.06% to $ 1.2920, above the session low of $ 1.2866.
“There is no point in Michel Barnier coming to London next week when he is ready to speedily address all issues on the basis of a legal text without Britain having to take every step or discuss the practicalities of travel.” and transportation, ”said the Prime Minister’s official spokesman, according to media reports.
Just a day earlier, EU leaders abandoned their commitment to “work closely” with the UK to reach a trade deal, saying the UK must “take the necessary steps” to reach an agreement.
Equal competitive obligations, fisheries and governance issues remain major sticking points for progress in trade talks.
The negotiators on both sides have confirmed, but they will be in touch by phone next week.
The lack of progress on a deal and the surge in Covid-19 infections has led some on Wall Street to consider betting against GBP / USD against a cheap trade next week.
“We recommend a short tactical GBP / USD trade idea to reflect the higher Brexit risks in the coming week after the EU leader made no progress on a trade deal,” MUFG notes. “The outlook for the UK economy is darkening towards the end of the year, which could encourage the BoE to provide further impetus next month,” she added.