Cable is down 96 pips today and GBP/CHF is flat at 1.2345
MUFG maintains a bearish GBP bias, and short exposure in GBP/CHF.
"The EU's Brexit negotiator Maros Sefcovic will update EU ambassadors today on the current status of negotiations with the UK with tensions increasing by the day. The market is not particularly concerned or focused on this at present but there is certainly a risk of a sudden escalation that would immediately grab the attention of market participants," MUFG notes.
"GBP is the second worst performing G10 currency over the last five trading sessions and an escalation in trade tensions, if seen as severe enough would be the catalyst for further selling," MUFG adds.
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