European session review: GBP weakens as investors track developments in EU-UK trade talks

GBP fell against its major rivals in the European session on Monday as investors digested the media reports, suggesting that the final stage of the EU-UK trade talks could collapse.

Reuters reported that an EU diplomat said on Monday that the UK's chief Brexit negotiator David Frost and his EU's counterpart Michel Barnier made some progress during the latest round of talks but "not quite managed to bridge differences", including stable access to UK waters for the EU fishermen and state aid provisions. “We are at the make-it-or-break-it moment,” he added. Meanwhile, the EU Financial Services Commissioner Mairead McGuinness said that the prospects of the post-Brexit trade negotiations are not looking good as "the UK are failing to understand the significance of the three outstanding issues and the need for the UK to compromise”. The Daily Mirror's political editor reports that the European Commission's (EC) source told her that "things are "stuck" and says "more talks" is best scenario", while some insiders from the office of the British Prime Minister (PM) "feel no-deal is on cards". The RTE's Europe editor reported, citing sources, that Barnier warned the UK that a deal would not be approved by member states if it pressed ahead with passing the Internal Market and the Finance Bills into law. He also said that negotiations could continue until Wednesday but no further. "Barnier told MEPs the talks were in the “endgame” and that there would have to be a decision on whether or not there was to be an agreement by Thursday," the RTE's editor tweeted.

The UK PM Boris Johnson and the EC President Ursula von der Leyen are set to speak today at 16:00 GMT.