Sterling has been on another white knuckle ride amidst...

Sterling has been on another white knuckle ride amidst breaking Brexit headlines that have highlighted the ongoing stalemate between the UK and EU regarding key areas, and especially the hotly disputed and contested issue of fishing rights. Despite divergence on the level playing field and state subsidies, fisheries seem to be the main bone of contention resulting in a lack of progress towards drawing up a draft trade deal proposal in time for this week’s 2-day Summit and certainly before PM Johnson’s October 15 deadline, unless he manages to pull a final hour agreement out of the bag during a conference call with Commission President von der Leyen and her Council counterpart Michel that is scheduled for 19.30BST. However, reports suggest that the UK will not walk away from talks and both sides intend to intensify discussions, assuming the PM gives the thumbs up by Friday, while the word from Brussels is that an accord can still be forged even though gaps remain large and time is running out. Back to the Pound, Cable has completed a remarkable, all things considered, turnaround from circa 1.2864 and under the 21 DMA (1.2892) to trade just above 1.3060 at best, while Eur/Gbp is over 1 big figure below the 0.9121 high, and the volatile moves have been influential in terms of Dollar and Euro price action. Indeed, the index hit peaks just beyond the 21 DMA (93.655) at 93.670 when Sterling was sliding in early EU trade and then recoiled to a 93.242 low beneath the 50 DMA (93.272) as Cable reclaimed 1.3000+ status, while Eur/Usd tracked its Gbp equivalent from 1.1721 to 1.1770 with a lag due to counter cross-winds.