22 December 2020 : Negotiations between the United Kingdom and European Union will resume today after both sides missed yet another deadline to reach a post-Brexit trade deal.

Given how the European Parliament had already warned that it would not be able to ratify any deal in 2020 unless it had been presented with one by Sunday, where do we go from here? With ten days left until the transition period ends, time is running out for a Brexit trade deal. It is becoming clear that EU fishing access to UK waters after Brexit remains the major obstacle obstructing any progress in talks. We are now very used to the constant back and forth around Brexit negotiations which we have seen over the past few years, but the week ahead could be tense for Sterling as the hard deadline of 31 December looms.

Looking at the technical picture, the Pound has woken up on the wrong side of the bed this morning thanks to rising fears around a no-deal Brexit. It has weakened over 1.5% against the Dollar, approaching the 1.3300 level as of writing. A breakdown below this support may open a path back towards 1.3200.

Reporting for EasyKobo on Tuesday ,22 December 2020 in Lagos, Nigeria

Lukman Otunuga, Senior Research Analyst at FXTM