European session review: GBP mixed as investors continue to track developments in EU-UK trade talks

GBP traded mixed against its major rivals in the European session on Tuesday as investors continued to track developments in trade talks between the EU and the UK. The pound rose against JPY, AUD and NZD, fell against EUR, CHF and CAD, and changed little against USD.

On Monday, the UK's Cabinet Minister Michael Gove reiterated that the EU must change its approach on post-Brexit trade talks if it wants to restart negotiations. The trade talks were halted last week after the British Prime Minister (PM) Boris Johnson concluded that there was no point in continuing them and the UK should get ready for an Australia-style no-deal break with the EU. However, he added that Britain would listen if there was "a fundamental change of approach" from Brussels.

Bloomberg reported earlier today, citing an EU source, that the EU and the UK chief negotiators, Michel Barnier and David Frost, will discuss next steps in negotiations later today, after having agreed to "intensify" them at Monday's meeting. 

Despite an impasse in the EU-UK talks, investors still hope that the sides eventually will agree on some sort of an agreement.