Despite Brexit woes, GBP/EUR recovers from three-month low
Written by Canarian Weekly Business
THE pound plummeted, recently, to a three-month low against the euro, as the latest, Brexit developments took their toll. GBP/EUR has since recovered some of its lost ground, however, with the pairing edging up from 1.10 euros to 1.11. EUR/GBP, meanwhile, has edged back below £0.90.
GBP/USD remains over a cent weaker than the month's opening levels (currently trading at $1.26), while EUR/USD is fluctuating around $1.13.
Unsurprisingly, the last fortnight has been dominated by Brexit, with news relating to the UK's exit from the Eurozone driving GBP exchange rates. PM Theresa May's decision to cancel the hotly-anticipated parliamentary vote on her Brexit deal triggered broad-based pound losses, earlier in the month.
However, the fact that the PM later survived a vote of no-confidence was viewed as pound-positive, and GBP/EUR was able to edge away from multi-month lows.
The EU has asserted that it is unwilling to negotiate further on the current Brexit deal, and it has been reported that No.10 will now step up planning for a no-deal outcome.
In other news, the European Central Bank (ECB) adopted a rather dovish stance, following its latest policy meeting, and the US dollar has been fluctuating in reaction to the ongoing trade developments, between the US and China.
Christmas is coming, which should mean a period of relative calm. However, if we see any significant Brexit headlines over the next couple of weeks, the pound could have an excitable start to 2019.
Data releases over the next fortnight are fairly sparse, although we do have the Bank of England’s (BoE) rate decision, US growth data, and the publication of the ECB's economic bulletin to look out for.
At Currencies Direct, we're here to talk currency whenever you need us, so get in touch if you want to know more about the latest news, or how it could impact your currency transfers.
Since 1996, we've helped more than 250,000 customers with their currency transfers. Just pop into your local Currencies Direct branch, or give us a call to find out more.
The Currencies Direct team wish all Canarian Weekly readers a wonderful Christmas, with health and happiness in 2019!
T: +34 922 971 781