Brexit deal getting closer and the impact on Pound vs Euro rates

Brexit deal getting closer and the impact on the Pound vs Euro

The Pound vs Euro rate has had one of its best weeks this year with Sterling hitting 1.15 during the last couple of trading sessions.

Is a Brexit deal getting closer?

At the moment it appears as though the Brexit talks are going in the right direction and with Prime Minister Theresa May having suggested that a deal is 95% done, could we see a deal agreed during November?

With Brexit Secretary Dominic Raab having also suggested recently that a Brexit deal could be agreed by 21st November this has given the Pound a real boost against a number of different currencies including the Euro. Indeed, on Wednesday Raab left the Cabinet with his thumbs up.

However, there is still a big difference in opinion, with former Brexit Secretary David Davis claiming that the current planned Brexit deal will be voted down in Parliament, which in his opinion should allow an attempt to create a better deal.

Pound vs Euro: Economic data that could affect the GBP/EUR

Turning the focus back to what is happening in the UK in terms of political data we have a number of economic data releases for the UK which could impact the Pound vs Euro rate.

UK GDP data is due out later this morning at 9:30am with the data predicted to show a rise of 0.2% compared to the previous quarter.

If this data is accurate we could see growth of 0.6% and this could provide Sterling with some further support. We could see Pound vs Euro rates of 1.15 later on this morning.

At the same time as UK GDP we also have the release of both Industrial and Manufacturing Production data for September, as well as Trade Balance figures, so expect to see a very busy start to this morning if you’re in the process of making a currency transfer involving both Pounds and Euros.

The outlook for next week

As we move in to next week the Pound vs Euro exchange rate is likely to be dominated by what is happening politically and the topic of Brexit. However, make sure you keep your eyes on what will happen with the release of UK unemployment data due out on Tuesday morning.

Unemployment in the UK has been very positive recently so another positive release combined with some positive Brexit news could send Pound to Euros rates in an upwards direction.

If you have any questions about GBP/EUR exchange rates or would like to discuss a currency transfer in more detail please send me a message using the form below: