EUR/GBP retreats from 0.9000 with the pound firming up

FX
  • EUR/GBP rebound from 0.8860, rejected at 0.9000.
  • The pound appreciates after UK’s top adviser Cummings announces his exit.

Euro’s recovery from week-lows at 0.8860 has been rejected at 0.9000 and the pair pulled back to 0.8960 area on Friday, on track to close the week with a 0.7% loss.

The sterling appreciates as Brexit deal prospects improve

The pound has appreciated across the board at the end of the week and is 0.4% up against the euro on the back of 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 favorable approach as the Brexit negotiations reach their final stage.

Dominique Cummings has been one of the main supporters of the Brexit and a key person in the 2016 referendum campaign to Leave the European Union.

After missing the mid-November deadline, the negotiaors 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 key issuer such as fisheries and the level playing  field remain the main obstacles to avoid an unorderly exit from the Union.

Technical levels to watch

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