- The EUR / GBP fell back in the last few hours to rise to 0.9065.
- Attention is still on the Brexit deal.
The EUR / GBP in the European session jumped to 0.9066 and then fell back to 0.9017, to get closer to 0.9050. Thursday had a sharp decline, but found support above the important support zone at 0.9000.
The British pound lost steam after a series of not so optimistic headlines related to Brexit. Among the latest news is that a French official from the Secretary for European Affairs, Clément Beaune, said there is a risk that there is no Brexit deal and added that they would veto any deal deemed unsatisfactory.
This stems from comments by a UK official on Thursday that the talks had taken a big step backwards as the European Union hardened its position and presented a new set of demands. The setback weighed on the British pound and pushed the EUR / GBP cross to highs on Friday.
Then the pullback came after an EU official appeared, claiming that a trade deal with the UK is imminent and expected for the weekend.
As the talks progress to the end, investors will keep a close eye on the new developments surrounding the Brexit saga, They should continue to infuse some volatility.
On the other hand, the euro remained supported by the prevailing bearish sentiment around the US dollar and did not appear to be affected by the prospects for further stimulus from the ECB. This, in turn, was seen as one of the key factors that helped limit any further losses and helped the EUR / GBP cross hold above the key psychological mark of 0.9000.
Technical levels
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