Breaking News: GBP/USD leaps on reports the UK, Germany, drop critical Brexit demands

FXStreet Team FXStreet

Bloomberg is reporting that both the UK and Germany decided to abandon some crucial demands over Brexit in order to facilitate an agreement. They seek to less detail on post-Brexit ties according to people familiar with the details. The significant shift in positions could make an agreement easier to achieve.

Both sides have agreed on a more vague statement regarding the distant future. Instead, the talks will focus on the immediate term: an orderly transition deal. Agreeing on a future trade relationship will be pushed back to the more distant future.

The GBP/USD is trading significantly above 1.2900, up some 100 pips from the pre-news levels. The 1.3000 level looms above. .Further resistance awaits at 1.3045. Support awaits at 1.2940, followed by 1.2835.

Chief EU Negotiator Michel Barnier visited Berlin last week and said that the EU is ready to offer the UK a "deal like no other country". However, in further comments, the veteran French politician rejected Britain's Chequers proposal and he sent the Pound back down.

There has been no official statement at the time of writing.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD remains depressed 0.7000, awaits FOMC Minutes

AUD/USD struggles to capitalize on its recent recovery move and trades with a negative bias below 0.7000 in Wednesday's Asian session. Amid geopolitical uncertainty, the US Dollar attracts some dip-buyers after a fresh leg up in US bond yields, keeping the pair under pressure despite hawkish RBA expectations. All eyes now remain on the FOMC Minutes.

USD/JPY holds firm near 158.50 ahead of Fed Minutes

USD/JPY hangs close to a one-and-a-half-week high near 158.50 in the Asian session on Wednesday, with bulls now awaiting a move beyond the 200-day SMA hurdle before positioning for further gains ahead of the FOMC Minutes. Meanwhile, a fresh leg up in US bond yields revives US Dollar demand amid geopolitical uncertainties, boosting the pair amid dovish BoJ commentary.

Gold trims losses, back above $4,100

Gold now manages to regain some balance, returning to the area above the key $4,100 mark per troy ounce following the closing bell in Europe on Wednesday. The yellow metal’s sharp pullback comes in tandem with marked gains in the US Dollar and a marked bounce in US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum and XRP fall liquidating $550M

Bitcoin’s correction follows a recent rejection due to supply around $87,200. Altcoins are generally in a correction trend, as Ethereum edges lower toward the next key support at $2,600 and Ripple extends its down leg near the $1.45 demand area.

Fed Minutes set to provide some insight into the timing of next rate hikes

The United States (US) Federal Reserve (Fed) will release the Minutes of September’s Federal Open Market Committee (FOMC) meeting on Wednesday. Investors are eager for some details that shed light on the extent and the timing of the central bank´s tightening cycle after approving the first interest rate hike in three years in September.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.