The EUR/GBP cross seesawed between tepid gains/minor losses through the mid-European session and was last seen hovering in the neutral territory, around the 0.9125 region.
Following the previous day’s rather volatile price swings, the cross now seems to have entered a consolidation phase in the absence of any fresh catalyst. It is worth recalling that the EUR/GBP cross witnessed a dramatic turnaround on Thursday and rallied around 90 pips from one-week lows after the Bank of England said that it had briefed policymakers on how negative interest rates could be implemented.
The strong intraday positive move lost steam near the 0.9170 region in reaction to optimistic Brexit comments by the European Commission President Ursula von der Leyen, saying that a trade deal between the EU and the UK is still possible. As investors digested the overnight developments, the EUR/GBP cross struggled to a firm direction and was confined in a range through the first half of the trading action on Friday.
Nevertheless, the EUR/GBP cross remains on track to end the week with heavy losses, eroding a part of the last week’s strong positive move to the 0.9300 neighbourhood, or six-month tops.