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The UK’s Telegraph is noting how the UK-EU relations have “plummeted to a new low after the last round of trade negotiations closed in mutual recrimination.”

David Frost, Britain’s chief Brexit negotiator, has told Boris Johnson that Michel Barnier is “losing the argument” in UK-EU trade talks but negotiations could end in no deal.  

Mr Frost briefed the Prime Minister that the EU must change its approach if there is to be any chance of sealing a free trade agreement before the deadline of the end of the year. 

But he warned that Mr Barnier, the EU’s chief negotiator, was straitjacketed by the EU’s refusal to change his negotiating mandate, which forced him to make unreasonable demands over fishing and the level playing field guarantees.

Officials believe Brussels is trying to force a halfway house compromise on British red lines such as a continued role for the European Court of Justice in British affairs, the creation of a Norway-style fishing agreement or the UK’s right to regulate itself as it sees fit….

The pound is under pressure in the open, hitting a low of 1.2077 so far vs the dollar and EUR/GBP us testing a high of 0.8956 with 0.90 in the bulls sights:

  • Chart of The Week: EUR/GBP Price Analysis, bullish to 0.9060, although pullback to support first?