- EUR/GBP eased back from a spike higher amid a slew of Brexit headlines.
- An EU official said that a deal is imminent and expected by the weekend.
- A bid tone towards the Euro helped limit the downside, at least for now.
After some volatility EUR/GBP has stabilised near 0.9030-40 .
GBP sold off in early European trade on negative Brexit headlines after France threatened to veto any deal that is deemed unsatisfactory.
This came after a UK official on Thursday said talks were going backwards owing to a hardened stance by the EU.the newsflow dragged on GBP, boosting the EUR/GBP to an intraday high level of 0.9067,although the move lacked strong follow-through..
EUR/GBP cross eased back by 50 pips refreshing daily low after an EU official was cited saying that a trade deal with the UK is imminent and is expected by the weekend. Volatility will continue to provide opportunities as the weekend draws near.
The Euro remains well supported by the a weak US dollar and appears unaffected by prospects for additional easing by the ECB. This is limiting the losses in EUR/GBP keeping it above the key 0.9000 psychological mark, at least for the time being.