EUR / GBP rises to two-day highs around 0.9050

• EUR / GBP gains traction for the second day in a row on Friday.
• The euro benefits from optimistic German and eurozone manufacturing PMIs.
• Brexit uncertainties weigh on the GBP and support the pair’s upward move.

The crossing EUR/GBP has moved higher during the first half of the European session on Friday and has risen to two-day highs, around the 0.9050 level in the last hour.

Having shown some resistance near the 100-day EMA, the crossing has managed to gain some positive traction for the second day in a row on Friday. The poor relative performance of the British pound against the common currency could be attributed to the persistent uncertainties around Brexit.

Despite the resumption of Brexit talks, investors remain concerned about disagreements over access to fishing and skills issues. The uncertainty has prevented the GBP bulls from opening new positions, which has been seen as a key factor in supporting the EUR / GBP cross.

It is worth remembering that the EU’s chief Brexit negotiator, Michel Barnier warned Wednesday that a level playing field remains a key concern and that there will be no trade agreement without a just solution for fishing.

On the other hand, the common currency has gotten a good boost following Friday’s upbeat German manufacturing PMI, which jumped to a 30-month high of 58.0 points in October. Investors expected the indicator to drop to 55.1 from 56.4 the previous month.

Further, euro zone manufacturing PMI also beat expectations and largely made up for disappointing Eurozone and German services PMI releases. In the meantime, mixed UK PMIs did little to provide a significant boost to the British pound.

Following the release of the data, it will now be interesting to see if the EUR / GBP crossover can capitalize on the move or once again encounters new selling at higher levels. However, the focus will remain on Brexit related news.