The British pound fell against the euro at the end of the session on Thursday in a market lacking direction and partially focused on negotiations between the United Kingdom and the European Union on a post-Brexit trade agreement.

At 22:00 GMT, the pound lost 0.23% against the euro, to 89.53 pence to the euro. Against the dollar, the British currency that had lost ground in session, regained some strength losing only 0.09% to 1.3261 dollars per pound.

The euro, down against the dollar in session, rose at the end of the day to 1.1875 dollars for one euro (+0.18%).

"The losses of the pound are partly explained by press reports, according to which some European countries are starting to think that better to no deal than a bad deal," said Lee Hardman, an analyst at MUFG.

But if concern begins to emerge among foreign exchange traders, "for the moment, the value of the pound does not reflect any consideration of a possibility of a no-deal Brexit," said Hardman, who predicts a fall in the British currency from 5% to 10% if this happens.

As the end of the transition period, scheduled for the end of December, approaches, negotiations are continuing.

Post-Brexit talks have been suspended between EU negotiator Michel Barnier and his British counterpart David Frost due to a case of Covid-19 in the European team, the Frenchman announced thursday on Twitter.

"Markets seem to be lacking direction right now," said Jefferies' Brad Bechtel. "The equity market has also been in several directions," he noted as Wall Street, which had started badly, closed modestly in positive territory.

"Two forces are opposed for the moment: on the one hand the hopes of promising vaccines, on the other the increase in the covid-19 positivity rate and the restrictions that follow," explained the Jefferies expert, promising the continuation of some volatility during the holiday season.