GBP/EUR Exchange Rate Buoyed by Talk of Brexit Timetable
The Pound Sterling to Euro (GBP/EUR) exchange rate has struck a new five-month high this morning as Sterling is buoyed by fresh reports that the UK government is preparing to have a Brexit agreement in place by the end of the month.
At the time of writing the GBP/EUR exchange rate is virtually unchanged from its opening levels today, leaving the pairing trading close to a five-month high.
Pound Sterling (GBP) Steady amid Reports of November Timetable for Brexit
The Pound (GBP) is holding steady against the Euro (EUR) this morning, trading close to a five-month high struck at the start of the European session.
This comes in the wake of reports from the BBC that Theresa May’s cabinet is aiming to complete a Brexit deal by the end of November and that a timetable has been drawn up to help achieve this, helping to buoy Brexit optimism and Sterling this morning.
However some analysts are striking a more pessimistic view, with a few suggesting that the Pound may be overbought in light of the hurdles still facing negotiations.
Ulrich Leuchtmann, FX strategist at Commerzbank in Frankfurt suggests:
‘Overall the market is banking quite clearly on a deal but to me things look less optimistic than current GBP levels illustrate. Time is running out. In view of the current mess I consider Sterling at its current level [of €1.14] to be unattractive.’
Euro (EUR) Exchange Rates Muted in Wake of Mixed Eurozone Retail Sales Figures
Meanwhile the Euro (EUR) is treading water this morning following the publication of the Eurozone’s latest retail sales figures.
According to data published by European statistics agency, Eurostat, retail sales growth across the block remained flat in September, missing expectations of a modest 0.1% growth.
While this was a disappointment to EUR investors it was countered somewhat by a revision to August’s figures, with growth revised up from -0.2% to 0.3%.
Ultimately however September’s data capped off a weak third quarter for retail sales, leaving the Euro to remain largely static against its peers on Wednesday.
GBP/EUR Exchange Rate Forecast: Solid UK GDP Figures to Bolster Sterling?
Looking ahead, to the latter half of the week, Brexit takes a back seat as attention returns to the UK economy with the publication of the UK’s third quarter GDP figures.
This may see the Pound Euro (GBP/EUR) exchange rate propelled higher on Friday as economists forecast the UK’s economic growth will have accelerated from 0.4% to a more robust 0.6% in the third quarter thanks to strong consumer spending over the summer.
Meanwhile EUR investors will be focused on the publication of the European Central Bank’s (ECB) latest economic bulletin on Thursday, with the Euro likely to slide if the recent slowdown in the Eurozone leads to a cautious outlook from the bank.