- EUR/GBP picked up firmly on renewed GBP weakness.
- Optimism of a last minute post-Brexit trade deal faded.
- ECB policy decision in focus
The selloff in the Pound intensified in the early European session, boosting EUR/GBP to a two-day high, at 0.9085.
Brexit headlines dampened hopes for a last-minute post-Brexit trade deal hitting demand for the British pound whilst lifting EUR/GBP as it continued to rebound from 0.9085-80 support.
A key meeting between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen saw no real progress, with a new deadline being set for Sunday.
Upbeat UK manufacturing and industrial production figures did little to boost the Pound. UK monthly GDP printed in line with forecasts but had no impact on the Pound.
A subdued US dollar supported the Euro ahead of the European Central Bank decision and pursuant press conference. Brexit developments will continue to drive GBP injecting volatility around EUR/GBP .