Although Barnier was cautious and stressed that differences on the Irish border issue remain a serious sticking point, the pound sterling jumped to a five-week high of $1.3052 on the report, up around 1 percent on the day, and rose around 0.3 percent against the euro.
Barnier has regularly said that he wants a deal by November to ensure parliamentary ratification by March, when Britain must leave, with or without a deal. He has routinely said that this timetable is a realistic one if negotiators find compromises.
He stressed that both he and the EU were "determined" to reach a deal, but said he was neither optimistic nor pessimistic.
He declined to be drawn into arguments within the British government over Prime Minister Theresa May's proposals for a close arrangement on customs and regulations for goods trade, describing them with a smile as an "intense, stimulating debate".