With news that the EU/UK talks are likely to roll on and on, pound traders have a decision to make
There's still time or a deal headline or two but it's getting late and the EU comments suggest that we won't get a deal today. That punts everything into the weekend and that's a risk for GBP traders.
Most of the press still believes a deal is coming but the market wants confirmation. If it comes over the weekend then we could have a gap open next week. Those of you sitting in positions that aren't long term need to have a think about whether you want to hold or cash in and mitigate that risk.
I'd put the risk of a gap either way at a max of 50-100 pips, maybe a bit more if it's a huge deal. At the end of the day the referendum is what counts but a deal here will go a long way to deciding the how big a mountain Dave will have to climb in persuading voters in the run up to it.
For now he's probably got one eye on a hot bath and a cold pint.
That's where I'd be right now
