UK government source: It does not feel like we will have a Brexit deal by next week

Sterling falls on the headline by Reuters here

Kapow! The pound erases its earlier gains with cable falling to 1.3030 from 1.3070 earlier. This will at least douse the fire from optimism seen in overnight trading.

The positive news is that this doesn't really change things all too much. We all know what the UK and the EU are aiming for as outlined here, so all the headline here does is temper with those hopeful that a breakthrough would've miraculously come before March.

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