Pound Weakens Amid Brexit Concerns

The pound dropped against its major rivals in the European session on Friday, as Brexit talks remained deadlocked over issues related to fisheries, state aid and future dispute resolution.

Brexit trade talks will resume in London this weekend, as negotiators are racing to strike a deal before the expiry of the U.K.'s transition period.

Ahead of in-person talks, EU chief negotiator Michel Barnier said that the "same significant divergences persist" between the two sides.

Prime Minister Boris Johnson said that the likelihood of a deal is very much determined by the EU.

Time is running out to strike a post-Brexit trade deal, with both sides calling on the other to compromise on key issues.

The pound depreciated to 1-week lows of 1.2078 against the franc and 0.8955 against the euro, after rising to 1.2132 and 0.8913, respectively in early deals. The pound is seen locating support around 1.175 against the franc and 0.92 against the euro.

The pound weakened to a 2-day low of 1.3311 against the greenback and a 4-day low of 138.61 against the yen, off its prior highs of 1.3382 and 139.28, respectively. The next possible support for the pound is seen around 1.28 against the greenback and 135.00 against the yen.