- EUR/GBP sold off steeply on Wednesday, pulling back further from multi-week highs.
- Brexit trade deal optimism lifted the Pound .
- Dovish ECB expectations weighed on Euro
EUR/GBP dropped to weekly lows in the European session towards the key 0.9000 psychological mark.
EUR/GBP trades down 140 pips from 0.9140 in two days. The British pound revived amid growing optimism for a last-minute Brexit deal.
The UK Cabinet minister, Michael Gove suggested the UK could compromise on fishing rights German Chancellor Angela Merkel hinted that the EU could be willing to compromise on the level-playing field.
UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will meet later at 19:00 GMT on Wednesday. Investors unwound bearish GBP pressurising EUR/GBP.
GBP is the almost an exclusive driver of the EUR/GBP pair’s intraday fall, upcoming Brexit-related headlines will be in focus.