EC President Jean-Claude Juncker said that it is impossible to reach a deal today. However, big progress has been made and negotiations will continue. He is still optimistic about getting an agreement before the EU Summit on December 14-15th. Also UK PM May says that more consultation is needed.
The pound dropped sharply and then bounced. However, the 1.35 has been lost even after the recovery.
Any delay implies a risk for total failure, even if significant progress was truly made. A deal between London and Dublin on a “regulatory alignment” between Northern Ireland and the Republic of Ireland triggered angry responses in the UK, especially from the DUP.
Irish Regulatory Alignment could tear May’s government apart
The deal came under huge scrutiny from other parts of the UK: Scotland, Wales and London also want regulatory alignment with the EU: a softer Brexit. Hard Brexiteers aren’t happy either.
GBP/USD was unable to break resistance at 1.3550 and traded around 1.35. The BBC report sent it down to 1.3413, even temporarily below the day’s previous lows of 1.3419 before it bounced back up.