GBP declined against its major rivals in the European session on Thursday, as market participants assessed the latest comments of the EU and UK chief negotiators, which reaffirmed that an agreement won't be reached in post-Brexit trade deal talks this month.

The UK's chief negotiator David Frost noted that "considerable gaps" remain in most difficult areas (the so-called level playing field and on fisheries), but an agreement can still be reached in September. Meanwhile, the EU's chief Brexit negotiator Michel Barnier said that the bloc is "still far away in negotiations" with the UK. "We have no visibility on the UK intention on its future domestic subsidy control system, time for answers is quickly running out," he stated. However, Barnier also stressed that neither the UK nor the EU has considered abandoning talks.