Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Pound Sterling Forecast (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Pound to Euro Reaches 2-Month High

% of readers think this story is Fact. Add your two cents.


The pound to euro exchange reached a 2-month high during yesterday’s trading as news of a Covid-19 vaccine and increased optimism of a Brexit trade deal boosted the currency pair. Pound to euro was up more than 1 percent at one point, trading at 1.1250 although finished the day consolidated just above 1.12. Pound to dollar saw similar gains, reaching 1.3270 before holding comfortably above 1.32.

The major break was confirmation that pharmaceutical giant Pfizer could soon have a vaccine in place to combat the coronavirus pandemic. Testing has shown the vaccine to be over 90 percent successful in trials to date and the vaccine could be available within a matter of weeks. The UK, along with the US will be at the front of the queue, having ordered 40 million doses, which will go a long way to getting the UK economy back on its feet quicker than others.

The pound also benefitted from an increase in investor’s risk-appetite. As we’ve seen over these past few years, the pound has become increasingly sensitive to market confidence and news that a vaccine could finally put an end to these dreaded lockdowns, has only furthered the pound’s gains.

Investors have also increased the possibility of the UK-EU reaching a trade deal after the UK signified that it may be willing to compromise on fisheries, which has been one of the two key stumbling blocks. Whilst the UK has signified it still intends to take back control of its waters, the UK has indicated that it may be willing to look at an agreement for several years as opposed to the annual terms that had previously been expressed.

Fisheries, along with the EU’s demand for a level playing field have been the two stumbling blocks with one EU official recently stating that 90 percent of the trade deal had been agreed outside of these two points. The level playing field is what is economically important to the EU as this will prevent UK businesses from undercutting their EU competition via means such as state aid. However, fisheries, which accounts for less than 1 percent of UK and EU GDP is a highly sensitive issue with both the UK and EU having previously drawn out clear red lines on what they would accept. The UK stating it would take back full control of its waters and the EU saying a deal on fisheries was a prerequisite of a trade deal. It is unlikely that either party will compromise fully so middle ground will need to be found, which in turn allows for both the UK and EU to walk away from the deal with a win.

The question now is will the EU also compromise on their red lines? Following the election of US president Joe Biden who fervently opposed Brexit and cited his concerns over the UK’s Internal Market Bill and its impact on peace in Northern Ireland, will the EU now try to extract more from the UK?

Where Next for Pound to Euro?

Whilst the pound has received some welcomed support, the market is still conscious of Brexit and pound to euro is unlikely to rally much higher without further news on the Brexit trade talks. If the UK-EU can agree a trade deal, then the pound to euro exchange rate could quickly target 1.15. EU leaders will meet at the EU Summit on 19th November and it is hoped there will be a deal to put in front of them. That’s 8 days away and it is likely we will soon gain insight into exactly where the UK and EU are in respect of their trade talks.

Whilst markets are increasingly optimistic, a no-deal scenario cannot be ruled out and a lack of progress in negotiations this week will concern investors and could send pound to euro lower. This seems less likely, but nevertheless, is still a possibility. In the short-term the outcome of the Brexit trade negotiations will remain the key driver behind the pound to euro exchange rate and the currency pair will be sensitive to Brexit headlines.

The pound could also benefit of Pfizer’s vaccine progresses in the way that is hoped. There are still lots of questions around transportation and who will be offered the vaccine first but it seems the UK government are beginning to look at these, with suggestions that care homes and the elderly will be top of the priority list and questions over whether children will be vaccinated at all.

Get in touch using the form below to find out more about these factors, which are constantly developing, and impacting sterling exchange rates throughout the trading day. I’ll be happy to respond personally and discuss your enquiry.

The post Pound to Euro Reaches 2-Month High appeared first on Pound Sterling Forecast.



Source: https://www.poundsterlingforecast.com/2020/11/pound-to-euro-reaches-2-month-high/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST


Order by Phone at 888-809-8385 or online at https://www.herbanomic.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.