- EUR/GBP trended lower for a second straight session on Wednesday.
- Brexit trade deal optimism supported the pound.
- Weaker USD underpinned the Euro.
The EUR/GBP trended lower in the mid-European session trading towards the lower end of its weekly trading range sub 0.8950s. The pair extends losses for a second straight session thanks mainly to a stronger Pound.
Hopes that the EU & the UK could reach a Brexit trade deal by early next is boosting the Pound. Better-than-expected UK consumer inflation data added to the upbeat mood pressurising the EUR/GBP cross.
Meanwhile the Euro benefitted from a weaker US dollar only factor that helped limit further losses for the EUR/GBP cross, at least for now.
Investors might wait for Brexit updates before placing any aggressive bets. The EU negotiators are expected to update the bloc’s 27 member states on the latest in trade talks with Britain at 0700 GMT on Friday.
Any subsequent fall could find solid support attracting dip-buying near 0.89.