The single European currency was stable against the dollar on Friday, after losing ground the day before, while the pound entered a crucial day for Brexit negotiations with a touch of optimism.

Around 08:55 GMT (10:55am in Paris), the euro was virtually unchanged against the greenback, at 1.1707 dollars.

At the same time, the pound rose 0.21% against the greenback to 1.2934 dollars, and 0.22% against the euro, to 90.52 pence per euro.

“It seems that the markets are not expecting a 'no deal' scenario, with the pound remaining very close to $1.30,” said Ricardo Evangelista, an analyst at Activtrades.

Against the dollar, the British currency was indeed much closer to its annual high reached in early September, nearly $1.35, than to its mid-March low, under $1.15.

The dialogue of the deaf practiced by the two parties, the European Union and the United Kingdom, “is seen as a tactical manoeuvre rather than a reluctance to negotiate”, added Mr. Evangelista.

“Nonetheless, the pound is expected to experience a period of turbulence,” with each statement “likely to increase volatility,” he added.

European leaders, meeting at a summit in Brussels, asked the United Kingdom on Thursday to “do what is necessary” to unblock post-Brexit trade negotiations, provoking London's irritation.

This tension comes at a time when British Prime Minister Boris Johnson is threatening to leave the talks. He is due to make a decision on the subject on Friday, in the light of the “results” of the European summit.

A voice that counts on the markets, the President of the European Central Bank (ECB) Christine Lagarde also estimated on Thursday that an agreement between the United Kingdom and the European Union sealing their post-Brexit relations will eventually be concluded due to the considerable stakes for both parties.

Forex traders were also watching closely the evolution of the Covid-19 pandemic around the world, which this week “played in favor of the American dollar”, a designated safe haven, said Derek Halpenny, from MUFG.

Friday classes Thursday classes

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 08:55 GMT 21:00 GMT

EUR/USD 1.1707 1.708

EUR/JPY 123.17,123.45

EUR/CHF 1,0714 1,0708

EUR/GBP 0.9052 0.9069

USD/JPY 105.22 105.45

USD/CHF 0.9153 0.9146

GBP/USD