CNBC Article says it all: https://www.cnbc.com/2019/03/11/brexit-frustration-rises-in-eu-circles-as-talks-are-deadlocked.html
GBP rose today vs EUR (although hardly moved vs USD) as rumours spread that PM May had gained some sort of offer from the EU after her day of meetings in Strasburg. If she does have something new to bring to the UK parliament tomorrow, then a ‘meaningful delay’ will help confidence in the UK.
Markets do NOT like the thought of a no-deal, and even if avoiding this means a delay with new, defined items being brought to the table, then GBP will hold its ground.
Until tomorrow, this remains conjecture, and nervousness / volatility will dominate UK markets.
USD: Overnight, Fed Powell reiterated that US rates remain at a neutral level, and the Fed is not in a hurry to change them. This ‘data-watching’ by the Fed has stabilised the USD after a rollercoaster 18months dominated by a strong economy and rate hikes which was swiftly stopped and then undone by a rapidly slowing economy.
Evidence of this slowing economy was on show last week as China printed some very poor data, and on Friday US job numbers were very weak. The only positive news from either nation is creeping out of China, with an official quoted as saying trade talks are progressing well. US Retail Sales showed a nice uptick, but the market reaction was muted as it only undid last month’s poor reading.
All eyes on the UK tomorrow, let’s hope something suggests an outcome, of any type!