EU chief negotiator Michel Barnier said it could take “weeks or months” for talks to progress to the next stage.
But he did acknowledge that a “new dynamic” had been created by Theresa May’s speech last week.
MUFG currency economist Lee Hardman told Reuters: “He (Barnier) is suggesting that they’re making more progress now and that there’s positive signs in the negotiations this week.
“That backs up the view that if this continues, there’s potentially some scope for EU leaders to grant some concessions to the UK.
The euro plunged in response to the shock outcome and amid concerns over increasing support for far-right anti-immigration group Alternative for Germany (AfG).
Uncertainty surrounding two looming elections in the EU could spell disaster for the euro, consequently boosting the exchange rate for the pound.
On Sunday Catalonia will vote on whether to split from Spain – even though the referendum put on by separatists has been branded illegal by Spanish authorities.
Meanwhile in Italy campaigning is due to start imminently for an early 2018 election.