Money markets pare bets on ECB, BOE rate cuts as Brexit deal hopes grow

LONDON (Reuters) - Money markets scaled back expectations for interest rate cuts from the European Central Bank and the Bank of England on Tuesday, after news that UK and EU negotiators are nearing a draft Brexit deal.

Euro zone money markets now price a roughly 10% chance of a 10 basis-point rate cut from the ECB at its December policy meeting, compared to a 20% probability on Friday, according to EONIA money market futures. <ECBWATCH>

The chance of a 25 bps rate cut from the Bank of England fell to 76%, compared to around 90% on Friday. <BOEWATCH>

(Reporting by Yoruk Bahceli and Saikat Chatterjee; editing by Sujata Rao)