The EU is ready to negotiate the new relationship with the UK "in parallel on all themes," European Union's Chief Brexit Negotiator, Michel Barnier, told the 27 EU states, Reuters reported on Wednesday, citing diplomatic sources.

Barnier further added that he sees the risk of a cliff-edge at the end of 2020 on fisheries and trade. "The EU will link fisheries to trade and level playing field discussions," Barnier explained. "We will not give ground on key interests, will seek to apply the EU state aid rules to the UK after Brexit."

GBP reaction

These comments seem to be weighing on the British pound. As of writing, the GBP/USD pair was down 0.23% on the day at 1.2996 and the EUR/GBP pair was adding 0.05% at 0.8462.