EUR/GBP spikes to session tops, retakes 0.9100 mark on negative Brexit headlines

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  • EUR/GBP regained traction on Thursday and eroded a part of the overnight losses.
  • Pessimistic Brexit headlines took its toll on the sterling and provided a goodish lift.
  • A mild bid tone surrounding the shared currency remained supportive of the move.

The British pound weakened across the board and pushed the EUR/GBP cross back above the 0.9100 mark, or fresh daily tops during the early European session.

Following a brief consolidation through the early part of the trading action on Thursday, the cross managed to regain some positive traction and recovered a major part of the previous day’s losses. The latest leg of a sudden spike over the past hour or so was exclusively sponsored by the emergence of some fresh selling around the sterling.

According to Reuters, citing EU sources familiar with the matter, the EU and the UK failed to close differences in the latest round of trade talks. The sources further clarified that both sides are split on the issue of state aid and the final consent from the EU side would depend on the withdrawal of the UK’s so-called internal market bill.

The pessimistic remarks took its toll on the British pound, which, in turn, was seen as one of the key factors driving the EUR/GBP cross higher. Apart from this, a mild bid tone surrounding the shared currency – supported by a softer USD and mostly in line Eurozone PMI prints – remained supportive of the EUR/GBP pair’s intraday positive move.

Market participants now look forward to the final version of the UK Manufacturing PMI. The data seems more likely to pass unnoticed and do little to provide any meaningful impetus to the EUR/GBP cross as the key focus will remain on incoming Brexit-related headlines.

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