The British pound is under pressure as the weekend’s Brexit talks reached a stalemate, potentially scuppering the prospect of an orderly transition. The GBP/JPY has dropped below its monthly long trading range. The GBP/USD gapped lower, with 1.3100 holding as support for now. The EUR/GBP jumped higher, building on the last two days of gains.
The euro itself is hardly a bastion of stability, opening with a weaker position this morning. The EUR/JPY is also continuing its downwards slide, while the EUR/CHF has gapped lower from the highs.
The dollar is generally mixed, with the AUD/USD continuing Friday’s weakness. The USD/CAD is making moderate gains in line with October’s general strength. The USD/CHF is lower though as the Swiss franc recovers ground.
The USD/JPY continues to weaken, with the yen holding the October gains.
At 13.30, we have US retail sales.
BOC business outlook survey follows at 15.30.
The pound is weaker this morning, but the general tone of the Brexit talks appears to be tentative disappointment rather than disaster. Brinkmanship and last minute deals are the hallmark of EU negotiations, so there may still be some hope.