European session review: GBP little changed amid concerns over impasse in Brexit trade talks and speculations about negative interest rates

GBP changed little against most other major currencies in the European session on Thursday amid concerns over an impasse in Brexit trade talks and speculations about negative interest rates.

The UK told the European Union (EU) on Wednesday that it needed to break an impasse to get a Brexit trade deal by the end of the year. British Prime Minister Boris Johnson will travel to Brussels next month to evaluate the progress of Brexit trade talks. The current transition period will end on December 31. The UK's government continues to insist that the transition period is not to be extended.

The threat of negative rates also continues to weigh on the pound.The Bank of England's (BoE) policymaker Michael Saunders refused to rule out negative rates. When asked about his views on taking the key interest below zero, Saunders said he had nothing to add to last week's remarks from the BoE's governor Andrew Bailey. "I'm not going to get into the detail of [negative rates]," he said. "We review out policy toolkit, all aspects of it, on a regular basis, and so if we have got more to say on that, we will say so.

The general risk sentiment was also suppressed by rising tensions between the U.S. and China, especially after China's parliament voted to move forward with security legislation for Hong Kong.