By Yasin Ebrahim
Forex – The pound pared some gains Thursday after U.K. Prime Minister Boris Johnson said it was likely a deal wouldn't be reached unless the European Union eased its stance over key sticking issues including fishing quotas.
GBP/USD was up 0.51% to $1.3576 though had been as high as $1.3624
Johnson poured cold water on the prospect of the deal, saying it looked very likely agreement won't be reached unless European Union shifts its position subst.antially. The update arrived following a call with European Commission President Ursula von der Leyen over the progress in the trade deal negotiations.
Von der Leyen cut a less dramatic stance, acknowledging that issues remain, but said talks would continue.
Cabinet Office Minister Michael Gove earlier in the day was quick to quell any optimism a deal could be reached by the end of the week, saying the odds of agreeing a deal were below 50%.
Gove also confirmed that there was no wiggle room to push talks out into next year, insisting that Dec. 31 was a "fixed point in law" when the transition must end. "That would be it. We would have left on WTO (World Trade Organisation) terms," he added.
EU’s chief negotiator, Michel Barnier, earlier in the day tweeted about progress in talks, but conceded that "stumbling blocks remain," with just days to go until the deadline.
The European Parliament has given Brexit negotiators until Dec, 20 to strike a deal to allow enough time to ratify a potential agreement before the end of the transition period.