​GBP Turns Around Drops on Extended Trade Talks

WikiFX News (14 Dec.) - Britain and the European Union said after the Sunday meeting that talks would continue on a trade agreement. As a result, GBP/USD opened this Monday with a jump over 160 pips to 1.3391. The pair is now consolidating around 1.3330 after a late retreat.

Sources said British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen had instructed their teams to resume talks after their phone call on Dec.13 (local time), the deadline set previously.

Mrs von der Leyen said Sunday's call had been constructive, and they both thought it was responsible at this point to go the extra mile. The pound climbed in the wake of the news.

The EU has recently launched a series of contingency measures to address traffic issues between the two sides. Johnson said the two sides were still far apart on the issues such as level playing field, but he was pleased with the shift in the EU's position.

The EU's chief Brexit negotiator Michel Barnier will brief EU Ambassadors about the state of negotiations with Britain after the two sides agreed to keep talking in search of a trade agreement. Whether the pound could extend its upsides depends on further news.

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Chart: Trend of GBP/USD