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

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

At the same time, the pound sterling was up 0.21% against the greenback at 1.2934 dollars, and 0.22% against the euro, at 90.52 pence to the euro.

"It seems that the markets do not expect 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 remained much closer to its annual high reached at the beginning of September, nearly 1.35 dollars, than to its low in mid-March, below 1.15 dollars.

The dialogue of the deaf practiced by both sides, the European Union and the United Kingdom, "is seen as a tactical maneuver rather than a reluctance to negotiate," Evangelista added.

"Nevertheless, the pound sterling 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, on Thursday asked the United Kingdom to "do what is necessary" to unblock post-Brexit trade negotiations, causing irritation in London.

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

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

Traders were also watching closely the evolution of the Covid-19 pandemic around the world, which this week has "played in favor of the US dollar", a designated safe haven, said Derek Halpenny of MUFG.

Friday Classes Thursday Classes

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08H55 GMT 21H00 GMT

EUR/USD 1.1707 1.1708

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 1.2934 1.2909