Sterling falls on Brexit uncertainty.
Sterling under bearish pressure on strongly bearish sterling sentiment as the markets are starting to doubt if the Brexit deal can still be reached with the deadline quickly approaching. The negotiations have been stuck on differences over fisheries, state aid for companies and future dispute resolution – which is darkening any optimism after Britain became the world’s first country to approve the Pfizer-BioNTech COVID-19 vaccine. The EU rules for the internal market and the EU Customs Union will not apply to Britain from Jan. 1. “Swift progress is of the essence,” David McAllister, who chairs a Brexit group in the European Parliament. This is jeopardizing the talks as and Britain has repeatedly ruled out any extension to the talks into next year.
Expect sellers on upward corrections.
Next support to watch – 1.3285
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