- GBP up as Brexit-deal hopes abound.
- EU’s Barnier statements help the pound.
- EUR/GBP downside checked by persisting differences over crucial issues.
EUR/GBP trades near intraday low around 0.9065-60 during the European session after failing to extend its intraday recovery beyond the 0.9115-20 region – where it met with fresh selling.
The UK-EU Brexit-deal talks raised fresh hopes for the investors as negotiators agreed to extend trade talks beyond the previous deadline.
Even though EU’s chief Brexit negotiator, Michel Barnier said that two major contentious issues remained unresolved, the pound attracted fresh buying after the comments. Probably, the market participants felt relieved by his statement that the negotiators would pursue every opportunity to secure a deal.
Nevertheless, traders will be wary of the repeated failures by the UK and EU to find a middle-ground surrounding their differences on a few key issues. The persisting chances of a no-deal scenario helped the EUR/GBP to limit further losses.
With the present selling, EUR/GBP has given back most of its gains made in the last week and could fall below 200-hour SMA, potentially triggering further bearish pressure. As the economic-docket today is without any meaningful event, the Brexit updates will drive the action ahead.
At the time of writing, one Euro buys 0.9050 British Pounds, down -1.10% as of 10:22 AM UTC.