The developments regarding Brexit continue to influence the up and down movement of the pound sterling ahead of week-end trading.
At the start of the European session, markets were shocked by reports that Britain was still reluctant to compromise on three main issues that prevented the two sides from reaching an agreement.
The European Union (EU) negotiator officer, who informed the matter in a conference given to the ambassadors in Brussels today, said that the EU and UK are close to reaching agreement on most issues.
However, they are still far apart on three main issues, namely regarding fishing rights, guarantees of fair competition and ways to resolve future disputes.
Following that, the pound showed a slight contraction before trading higher again.
This increase was probably underpinned by the publication of UK retail sales data which saw an increase of 1.2% in October, which is 5.8% higher than the previous year.
However, news regarding the development of trade negotiations between the UK and EU will continue to be the main spur to the movement of the pound in the market.
The market is still expecting good news to be announced in the next week as previously said by UK officials that the two parties will reach an agreement.
