European session review: GBP mixed with focus on continuing UK-EU trade talks

GBP traded mixed against its major counterparts in the European session on Tuesday as market participants digested the latest news coming out of the negotiations between the UK and the EU. The pound rose slightly against JPY, EUR, CHF and AUD, fell against NZD and CAD, and changed little against USD.

Reuters reported, citing EU sources, that the EU's Brexit chief negotiator Michel Barnier told the EU ministers that movement in Brexit talks isn't sufficient so far. According to the sources, level playing field, fishery and enforcement measures remain the key controversial issues. Later in the day, Barnier tweeted that the block "will continue to work for a fair deal in the coming days and weeks". He also noted that the strong EU unity is confirmed ahead of the summit that starts Thursday.

Meanwhile, the UK's foreign minister Dominic Raab told the British parliament today that "the scope and the prospects for a deal are there". He also said that he is hopeful that the two sides can close the gap but "ultimately it will require the same goodwill, the same pragmatism, the same flexibility" on the EU side that the UK and PM Boris Johnson have shown.