Market Update

Sterling traders kept the currency afloat as they searched for clues on how likely it was for Britain to reach a trade deal with the European Union by the end of the year.

Price actions suggest investors lean towards a scenario where both parties eventually will agree on some sort of a deal, as they did last year over the divorce agreement.

So far this month, Brexit-induced volatility has left minimal mark on the price of the pound, which on a month-to-date basis, remains little changed.

Britain said it saw no basis to resume trade talks with the EU unless there is a fundamental change in approach from Brussels.

Talks halted last week as Prime Minister Boris Johnson said there was no point in continuing them, cancelling an in-person meeting. Discussions still were held over the phone, but negotiations have not resumed yet officially.

Trade talks between the EU and UK remain at an impasse with time quickly running out to reach a deal before the end of this year.

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