Von der Leyen: there is a path to an agreement; GBP/USD nears 1.3479/83. Brexit to knock around 5% off UK GDP in the long run – ABN Amro. GBP/USD nears the September and current December highs which were made at 1.3483 and 1.3540. A drop below the 2020 uptrend line at 1.3142 would negate upside pressure and target 1.2855 November low as well as the 200-day moving average at 1.2759. EUR/USD consolidated in the weekly highs ahead of the Fed. EUR/USD rose 0.2% to 1.2170, trading near a 2 1/2-year high of 1.2177 touched on Monday. The flash version of the German Manufacturing PMI unexpectedly rose to 58.6 in December. The reading was well above consensus estimates pointing to a fall to 56.4 from 57.8 recorded in the previous month. The dollar continued to head lower in early European trade Wednesday, with traders deserting the safe haven as U.S. lawmakers make progress toward a Covid-19 relief package ahead of the Federal Reserve meeting. The dollar index was down 0.1% at 90.317, falling to levels last seen in April 2018. USD/JPY fell 0.2% to 103.44, while the risk-sensitive AUD/USD was up 0.1% at 0.7564, near the June 2018 high of at 0.7580 seen on Monday.