Yesterday we saw Sterling gain over 0.5% against the Euro in a sudden spike following comments from EU chief negotiator Michel Barnier during a speech in Slovenia that he would expect a deal to potentially be in place between the U.K and EU within 6-8 weeks.
Later in the day we heard news on the wires that November 13th is being touted as a potential target for a Brexit summit where a deal may be put in place. This is certainly a date to put in your diary if you are in the process of buying a property overseas as we may witness some extremely volatile markets in the lead up to this date and certainly on this date if a deal is agreed.
GBP/EUR is exceedingly sensitive to any Brexit news and the higher the potential for a deal the more that Sterling appears to benefit. It does seem now that both sides are willing to compromise over a number of issues that had been previously holding a potential deal back, the prospect of a no deal had also been weakening the Pound in recent months so a change to this may see Sterling gain back value in the coming weeks.
Later this morning we have U.K unemployment data but Thursday really is the key day for this pairing. We have both the Bank of England and European Central Bank interest rate decisions, no changes to interest rates are expected for either however do be wary of comments in the BOE monetary policy statement or the ECB press conference, as suggestions on how they plan to deal with future fiscal policies, such as Quantitative Easing for the ECB will be key for currency movements.
If you’d like further insight into any of the factors discussed above, or have an upcoming transfer to make and have a question you’d like to ask, it takes just two minutes to fill in the form below and I will be more than happy to get in touch with you personally.