The Euro is edging lower after touching a two-month high against the US dollar, still riding the optimism of the Brexit deal reached between Britain and the EU during the EU summit on Thursday. At the time of writing, EUR/USD is trading around 1.111.

Even though the deal still needs to be voted by the UK parliament, which could be a major hurdle, markets celebrated the breakthrough in negotiations that was announced on Thursday. Following news of a Brexit deal emerging, the Euro gained more than 0.5% against the dollar, although it has edged slightly lower since then.

The sudden optimism in the markets not only boosted the Pound and the Euro but extended the rally into other currencies against the dollar as well, lifting the overall mood in financial markets. The US dollar, which was already trading under pressure following the release of a weak retail sales print for September, weakened even further as a result, causing additional bullishness in EUR/USD.