• EUR/GBP lacked direction trading a tight range
  • With no catalysts investors sat on the side-lines

The EUR/GBP hovered around the flat line and is trading in the 0.9125 region.

The pair appears to be consolidating after a volatile previous session. EUR/GBP saw a significant reversal on Thursday soaring 90 pips after the Bank of England took a step closer to negative interest rates.

The rally tired around 0.9170 following upbeat Brexit news. European Commission President Ursula von der Leyen said she believed that a EU – UK trade deal is still possible. EUR/GBP struggled for direction and remained range bound early on Friday.

EUR/GBP looks set to record steep losses across the week continuing to pullback from last week’s approach to 0.9300, a six month high.