The Pound struggled find demand in a broadly quiet start to the trading week amid growing concerns over a last-minute Brexit deal. The clock is ticking to the end of the transition period and negotiators still appear to be too far apart on some key issues.
Broad sentiment trends are downbeat Asian-equity markets trended lower possibly reflecting Friday’s disappointing US jobs data.
Concerns over rising US-China tensions could be adding to the risk off tone. The US is reportedly preparing to sanction Chinese officials over their role in the disqualification of legislators in Hong Kong.
The safe haven Japanese Yen is advancing but the safe haven US Dollar is lacklustre. Comments from Chicago Fed President Charles Evans warned against near-term stimulus suggesting that a reassessment of the bond buying programme may not happen until the Spring next year.
Attention will now turn to Chinese trade data which could be considered a proxy for the global consumption trends.