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  • EUR/GBP faded an intraday bullish spike amid a flurry of incoming Brexit headlines.
  • An EU official was cited saying that a deal is imminent and expected by the weekend.
  • A bid tone surrounding the shared currency helped limit the downside, at least for now.

The EUR/GBP cross had some good two-way price swings on Friday and now seems to have stabilised near the 0.9030-40 region.

The British pound witnessed some selling during the early part of the European trading session and was being pressured by a flurry of not so optimistic Brexit-related headlines. In the latest development, the French Junior European Affairs secretary Clément Beaune said there is a risk there will not be a Brexit deal and added that they would veto any deal that is deemed unsatisfactory.

This comes on the back of comments by a UK official on Thursday that talks had taken a big step backwards because the European Union hardened its position and turned up with a new set of demands. The setback weighed on the sterling and pushed the EUR/GBP cross to an intraday high level of 0.9067, though the uptick lacked any strong follow-through and ran out of the steam rather quickly.

The EUR/GBP cross retreated around 50 pips and refreshed daily low in reaction to headlines – citing an EU official – that a trade deal with the UK is imminent and is expected by the weekend. As talks go down to the wire, investors will keep a close eye on fresh developments surrounding the Brexit saga, which should continue to infuse some volatility and produce some meaningful trading opportunities.

On the other hand, the shared currency remained well supported by the prevalent bearish sentiment surrounding the US dollar and seemed rather unaffected by prospects for additional easing by the ECB. This, in turn, was seen as one of the key factors that helped limit any further losses and assisted the EUR/GBP cross to hold above the key 0.9000 psychological mark, at least for the time being.

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