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The latest round of EU-UK trade talks was one of the most positive so far and sides made “big progress” on issues including social security, Reuters reported on Tuesday, citing two diplomatic EU sources.

Additional takeaways

“EU sees nine of 10 UK proposals on social security coordination as acceptable.”

“Family benefits and health surcharge are the main sticking points on social security coordination in EU-UK talks.”

“We are getting closer and closer to deal despite no-deal rhetoric, the final decision will be in UK PM Johnson’s hands.”

“Level playing field, fisheries, governance remain biggest hurdles overall to a new trade deal with UK.”

“EU-UK trade talks deadline of end-October could slip as far as mid-November.”

Market reaction

The GBP/USD pair spiked to 1.2986 with the initial reaction to this headline but retreated quickly and was last seen losing 0.9% on the day at 1.2966.