The euro fell to more than a three-week low against the British pound on Thursday as hopes grew of a deal between Britain and European Union at a summit next month.

Data showing the UK economy shrank by slightly less than previously thought in the second quarter also helped the pound, as well as talk that EU farm subsidy payments to the UK due this week will lift sterling against the euro.

EU leaders are preparing to offer a two-year Brexit transition deal as early as January after negotiators were close to a deal over the Northern Ireland border, The Times said, citing EU sources.

The single currency fell to its lowest level against the pound since Nov 7 at 87.97 pence in early trades and has fallen 2 per cent over the last three sessions.

 

Source: REUTERS.