EUR/GBP retreats from 0.9000 as the pound firms up
- EUR/GBP rebound from 0.8860, rejected at 0.9000.
- UK's top adviser Cummings´ exit has provided a fresh impulse to the pound.
Euro’s recovery from week-lows at 0.8860 has been rejected at 0.9000 on Friday´s early trading and the pair pulled back again to seek support at the 0.8960 area. The EUR/GBP has managed to trim loses after a sharp decline on Monday, though it is still on course for a 0.75% weekly loss.
Sterling picks up on Brexit deal hopes
The pound has appreciated across the board at the end of the week and is 0.4% up on the day, buoyed by news about the exit of Prime Minister Jonson’s top adviser, Dominique Cummings. The market has assumed Cummings leave as a signal that the UK will adopt a more positive approach to facilitate the trade deal as the Brexit negotiations reach their final stage.
Dominique Cummings has been one of the main supporters of the Brexit and a key figure in the 2016 referendum campaign to Leave the European Union.
After missing the mid-November deadline, the negotiators are expected to return to the table on Monday in an attempt to make some progress ahead of a crucial EU leaders’ meeting on Thursday. The positions in crucial issues such as fisheries and the level playing field remain the main obstacles to avoid an unorderly exit from the Union.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
