That isn't comforting news for the euro

The single currency is dragged to the lows for the day now, down to 1.1195 against the dollar amid some added risk aversion in the market. But the headline above will certainly not do the currency any good with talks set to intensify in the coming weeks.

Merkel also adds that the EU "must be prepared for Brexit talks to end in failure".

EUR/USD H1 01-07

For EUR/USD, support at around 1.1191-00 remains a crucial spot as it has been since 25 June. Break below that and sellers may look towards the low @ 1.1168 next.