The pound fell sharply overnight against both the euro and the dollar but has made some recovery this morning. This comes after reports that French officials want EU officials to say talks have failed unless the UK concedes to EU demands within 48 hours. As with talks ahead of the withdrawal agreement last year, Brexit headlines are driving the pound. Negotiations continue today.
EU Chief negotiator, Michel Barnier, said that “talks stand in the balance” whilst President Macron said that he won’t sign up to anything that goes against France’s long-term interest.
Markit PMI data is due to be released for the UK this morning, which is expected to show that the service sector fell into contraction territory in November.
