• Off 0.05% after closing down 0.55%, with the USD +0.8% on fresh tariff talk

• UK's Starmer, Trump to work on an economic deal with AI at its core

• The UK may be one of the few countries to avoid significant US tariffs

• There is no first-tier UK data or BOE events, so the USD to lead sterling

• Charts - 10 & 21-day moving averages climb, as 21-day Bolli bands rise

• Daily momentum studies crest - the positive setup remains in play

• Last week's 1.2564 base, then the 1.2541 21 DMA are initial support

• Thursday's 1.2689 high and then the 1.2730 Dec 18 top are first resistance

• Close below the 1.2541 21-day moving average would be bearish for next week
Andy

(Andrew Spencer is a Reuters market analyst. The views expressed are his own.)