GBP/USD consolidates Brexit wash-out and awaits London’s traders

• GBP/USD has moved back to equilibrium following the fierce downside no-deal Brexit risk spike.
• Coronavirus vaccine is being distributed, but UK medicine regulator MHRA chief warns of anaphylaxis risks.

The pound was under pressure on headlines that the UK and EU are still far apart with respect to striking a deal. 

The UK’s Prime Minister Boris Johnson and European Commission President Ursula Von Der Leyen met to seek a Brexit breakthrough over dinner on Wednesday. 

They drew no conclusions to the debacle and have instead agreed to continue Brexit negotiations until Sunday. 

In a statement following three hours of dinner and discussions in Brussels, a senior Number 10 source said it was “unclear” whether the differences between the two sides could be bridged.

“Very large gaps remain between the two sides and it is still unclear whether these can be bridged.”

“The PM and VDL agreed to further discussions over the next few days between their negotiating teams.”

“The PM does not want to leave any route to a possible deal untested. The PM and VDL agreed that by Sunday a firm decision should be taken about the future of the talks.”

The chief negotiator’s Lord Frost and Michel Barnier are to reconvene in the city on Thursday, so expect plenty of noise between now and the end of the week.

It will be a nail-biting start to the week in Asia if nothing is agreed by close of play New York Friday. 

Britain starts to vaccinate

In a potential concern for markets, there have been two reports of anaphylaxis and one report of a possible allergic reaction following  COVID19 immunization in the UK.

Reuters wrote that ”Britain’s medicine regulator has advised that people with a history of significant allergic reactions do not get Pfizer-BioNTech’s vaccine after two people reported adverse effects, England’s National Health Service (NHS) said on Wednesday.”

“As is common with new vaccines the MHRA (regulator) have advised on a precautionary basis that people with a significant history of allergic reactions do not receive this vaccination,” Stephen Powis, National Medical Director for the NHS, said.

GBP/USD 1-hour chart

The next bout of price action will likely come from the European’s and London’s open around equities opening.

The hourly chart has left a wick that bears trading the lower time frames would want to see filled: