Shrugs off Barnier headlines
Earlier today, headlines highlighted that 'Brexit negotiations were suspended' and that sent algos into a little tizzy, knocking cable below 1.3200 briefly.
As I noted at the time, this was not a fundamental change in anything because only some negotiations were suspended and only because of a positive covid case in Barnier's team.
Since then, cable has slowly marched back to 1.3250, though it's still down 20 pips on the day. The daily chart shows a pause here after gains since the start of the week. Friday's trade is often about weekend risks, though a breakthrough is a longshot in the next three days. Talks are going to continue.
I feel like there's one twist left in this five-year saga. Nothing seems to get done in Europe without someone walking away from the table, or threatening to. That will be the time to load up on GBP, because a deal will eventually get done.
