The European Union told the UK on Friday that it was time to decide on the direction of trade relations. EU negotiators expect the negotiators involved to reach a post-Brexit trade agreement as early as this weekend.
With less than four to 4 weeks left, the UK will leave the European Union on 31 December. However, negotiations on Thursday were disrupted, prompting market players to think that there was a possibility of a 'no deal'.
The Prime Minister of the UK, Boris Johnson is currently in a tight spot as the deadline is approaching and coupled with the surge in the highest death toll in Covid-19, Johson must decide immediately.
Discussions this week indicate that there has been significant progress, in which one EU diplomat has issued a statement that an agreement is imminent.
Michael Barnier who is the leader of the EU negotiations is already in London for this increasingly critical negotiation. This week is an important week for both parties. EU diplomats believe Barnier's presence in the UK is a good sign for the Brexit deal.
Investors are still trying to understand the rhetoric that is going on i.e. whether the talks are close to the finish line or the negotiations themselves are in a troubled situation. This has affected the pound currency.
