Less than positive tones from Brussels overnight
Yesterday's (false?) hope has turned into a renewed uncertainty with EU leaders holding talks all night ahead of an announcement due today.
European Council President Donald Tusk said there had been "some progress" on the first day of the Brussels summit, but "a lot still remains to be done".
German Chancellor Angela Merkel said it had become "clear that agreement will not be easy for many, but that the will is there".
An EU source has spoken of five key areas where agreement has not been reached by EU leaders:
- How the EU's binding treaties will be altered to make the changes
- How many member states can trigger an "emergency brake" on migrant welfare
- For how long a member state can impose restrictions on in-work benefits for migrants
- Whether child benefit curbs can be applied retrospectively
- Changing treaties to alter the principle of "ever-closer" union
France is resisting attempts to secure protection for the City of London by giving non-Eurozone nations more power to stall financial regulation.
Talks are due to resume at 09.00 GMT and the BBC has more here.
Meanwhile GBPUSD has fallen back to 1.4308 as I type with EURGBP heading back up at 0.7766.
