Sterling drops as European Union warns just hours left for Brexit deal

Sterling drops as European Union warns just hours left for Brexit deal

Sterling drops as European Union warns just hours left for Brexit deal

an hour ago

Boris Johnson tries his hand at cable splicing during a visit to the Openreach Learning and Development Training Centre in Bolton, UK, on Friday. Agence France-Presse

Sterling fell on Friday, reversing some of its recent gains, after European Union chief negotiator Michel Barnier warned that there were just hours left to reach a Brexit trade deal with London.

The British currency is still on track for its best week since the end of July as market confidence has risen sharply this week on hopes that the European Union and Britain will clinch a last-minute trade deal ahead of a Dec. 31 deadline, when a Brexit transition period ends.

Almost a year after Britain formally left the EU, the two sides are in the final stretch of talks over a post-Brexit trade deal.

The pound hit 2-1/2 year highs above $1.36 this week, but Friday's trading session served as a reminder that the two sides still have divergent ideas on how they want to build their future relationship.

Barnier told the European parliament that the path to an agreement was "very narrow“, while British Prime Minister Boris Johnson said the British door