How UK house prices can help lift the GBP next week
GBP/USD is set to decline amid the challenges to the UK's economy in 2021, albeit recent boost of the Brexit deal.
Britain and the European Union said after the Sunday meeting that talks would continue on a trade agreement.
A no-deal Brexit seems possible as UK-EU trade talks reached the crisis point on Thursday, dragging GBP/USD down to 1.3250.
With the EU summit being held on October 15-16, the pound witnessed its overnight implied volatility jumping above 13% to a seven-month high.
Britain’s inflation rate dropped to the lowest since August, 2016, raising speculations that the Bank of England will have to take further measures to boost demand.