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Traders hoping for GBP/EUR to stabilise

14 Sep 2020

At the start of the week, the British Pound to Euro was trading at a spot rate of 1.0799, with analysts expecting the pair to stabilise in the coming days after posting its worst week since March.

Additionally, the British currency has suffered substantial technical damage on the charts, and risks further battering before seeing any kind of recovery. As a result of the ongoing Brexit talks – the latest being the UK’s approach towards the Internal Market Bill, the Pound was down almost 4% against the eurozone’s common currency.

Moreover, the Pound Sterling to USD trades over the 1.28 at the time of writing, supported by optimistic market sentiment ahead of a key debate in parliament. Brexit also weighed down on the pair, leading traders to hope that it stabilises in the coming days. The Dollar was lifted after the Pound posted its worst week. 

Members of parliament are due to discuss a problematic Brexit ‘no-deal’ scenario which would violate the EU divorce treaty.

The Euro-to-Dollar exchange rate is trading slightly below 1.1850. The pair underperformed last week. Furthermore, the Sterling lost and weakness in the stock markets paired with the European Central Bank’s currency concerns weighed heavily on the Euro.