GBP/EUR Remains in Tight Range as Brexit Talks Disappoint06 December 2017 by FC Exchange
Currency experts FC Exchange take a look at what's happening in European trading amid Brexit.
The pound remained in a tight range against the euro (GBP/EUR) on Wednesday as Brexit and geopolitical tensions weighed on the market. During the morning’s session, the pound slipped against other currency majors after Secretary of State for the UK’s departure from the EU, David Davis, announced that the British government hadn’t undertaken any sector-specific analysis that would indicate the impact Brexit would have on the economy.
It was hoped this week would see Theresa May succeed in elevating her negotiating positon to a place where she could move talks on to trade. However, this hasn’t happened yet and the pound is vulnerable to developments as they unfold. If a solution between the EU and UK does materialise, the British currency could rally on the news. However, with the 14th-15th December meeting of EU heads of government fast approaching, many suggest this could be May’s last chance to bag a deal and make sufficient progress, or else face a leadership election.
On Tuesday, sterling fell as optimism on a Brexit deal dropped as Theresa May was put in a position of winning over the Democratic Union Party (DUP). May had proposed a deal on Monday, but the deal was soon blocked by the DUP which props up May’s government on the possibility of ‘regulatory alignment’.
DUP Westminster leader Nigel Dodds stated: ‘Clearly the text that we were shown very late yesterday morning did not translate what we had been told in general conversations into reality because there was far too much ambiguity and didn’t actually nail down the need to be nailed down.’
Today, the pound to euro (GBP/EUR) exchange rate has fluctuated between levels of 1.1293 and 1.1360.
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