Is 1.15 a Glass Ceiling for GBPEUR or Will We See a Breakthrough?

GBP EUR Stuck in Range at 1.1700 Level

The pound to euro interbank exchange rate broke through the 1.15 mark earlier this morning as Boris coming back to work, and a fairly promising press conference on Monday evening from the Chief Medical officer Chris Witty gave investors a little bit of hope for the U.K economy to start moving back into action again, albeit very slowly.

The press conferences are starting to become a key player in exchange rate movements as investors and speculators around the world will try and see if they can get hints as to when countries may look to lift certain parts of their lockdowns and yesterday’s press conference did lift GBPEUR to a high of the day which was just below the 1.15 mark.

The positive trend continued first thing this morning and rates did creep slightly above the 1.15 mark, however at the time of writing this had dropped back below again. It appears at the moment that the 1.15 mark may be seen as a resistance level and effectively has been a glass ceiling over the past few weeks.

What Could Push the Exchange Rate Above and Beyond 1.15?

There are a few key economic releases still to come out over the course of this week, and the markets will be keeping a keen eye on any further news around Brexit negotiations and whether or not the U.K plan to delay the exit date or if the plan is to either get a deal or to leave with no deal.

Suggestions from Michael Gove were that the plan is still to proceed and to get a deal for the U.K but on Friday Michel Barnier’s comments suggested that this is quite a way off and that negotiations were not progressing very well.

On Thursday we have the European Central Bank (ECB) interest rate decision and all eyes will be on actions and comments regarding the support that will be thrown at the crisis across those connected within the Eurozone.

Over the years the ECB have been pretty good at dampening issues and sweeping potential large scale problems under the carpet so there is a potential for movements either way on Thursday depending on their tone, but should their movements not be taken well by the markets this could have the potential to trigger an upside movement through and clear of 1.15.

It is a difficult market to predict currently, with the factors impacting exchange rates changing daily. The key to planning ahead for your currency exchange is making sure you are in contact with a specialist currency exchange service if you have a foreign exchange requirement coming up. Should you be in this position and you would like my assistance, fill in the form below and I will be happy to get in touch to discuss your specific situation and the various options we have that may help you along the way.