The anticipation continues to build
Johnson and von der Leyen are reportedly expected to have one final call at 0700 GMT – most likely to make sure that their messages match up – before we get the official press conference to announce that a trade deal has been struck at around 0800 GMT.
I would expect both sides to “sell” a hard-fought victory after all the “struggles” in negotiating a compromise over the past few months/years. The details though, once they are made available in the coming days, could be a different story.
The pound is keeping higher still on the day with cable now at around 1.3560 though thin market conditions aren’t really helping to get a firm grasp of how price action is actually playing out in response to all of this.
I would argue that the official headline later will still provide some impetus for the pound to gain but perhaps nothing too overly dramatic.
Then again, a lack of liquidity could also spark exacerbated moves and a technical break above last week’s high of 1.3624 may see a further extension.
There is also a solid argument that we could see a ‘buy the rumour, sell the fact’ reaction (instead of a relief rally) but as mentioned, the lighter trading conditions are going to make things rather tricky during this period in time.