Brexit update: EU officials in the dark as to whether talks will continue beyond Xmas

Katya Adler, for the BBC, has tweeted that an EU diplomat says that they got impression details on outstanding issues were being thrashed out but there is no sense of timing of when a deal might be agreed before Xmas or even after the New year.

Market implications

Down some 0.8% at the time of the news, cable fell on Tuesday as Britain remained stuck in COVID-19 isolation due to a new coronavirus strain while Brexit talks remain stuck in the mud.

With days to the end of a Brexit transition period on Dec. 31, the pound had fallen below $1.32, weakening by as much as 2.5% on Monday as much of the world closed borders to the United Kingdom after London identified a highly infectious coronavirus strain.

Bulls will want to see the UK agree to extend talks beyond Xmas and into the New Year as a sign that a deal can still be achieved between the Brits and EU.