Is the Sterling/Euro headed towards 1.16?
07 February 2020

What a difference the name of a month makes. From sitting comfortably as one of the leaders of the foreign currency pack in January, Sterling has pulled a muscle early February as investors are taking their cue on the outcome of the EU-UK trade negotiations to send the Pound on a downward trajectory. So from a peak of 1.19 on 31.1 GBP/EUR went down to 1.172 on 4th before a rallying to 1.18 on 5th of February.

As the football managers might say, Sterling still has 'bounce-back ability' but the Pound is not selling well enough suggesting that that this particular bouncing ball needs some more air.

Sterling appears uber sensitive to any kind of negative news coming out of the Brussels meeting rooms. Yes, Sterling has fared reasonably against the Euro since the summer of 2019 when an EU deal was looking more likely and this gained traction leading up to the Conservative election win. But the Pound's robustness is coming under increasing pressure as the negotiations headline writers get busy.

Says Privalgo's Will Stephenson: "We are getting news from the front that a 'softer' settlement may be on the cards but despite this, Sterling is finding it hard to beat the 1.18 level. The uncertainty is preventing a sustained higher trend which would send the Pound further down the league table."

Speak to a Privalgo representative today to find out your best strategy for mitigating the GBP/EUR minefield during this time of volatility.

Is the Sterling/Euro headed towards 1.16?
07 February 2020

What a difference the name of a month makes. From sitting comfortably as one of the leaders of the foreign currency pack in January, Sterling has pulled a muscle early February as investors are taking their cue on the outcome of the EU-UK trade negotiations to send the Pound on a downward trajectory. So from a peak of 1.19 on 31.1 GBP/EUR went down to 1.172 on 4th before a rallying to 1.18 on 5th of February.

As the football managers might say, Sterling still has 'bounce-back ability' but the Pound is not selling well enough suggesting that that this particular bouncing ball needs some more air.

Sterling appears uber sensitive to any kind of negative news coming out of the Brussels meeting rooms. Yes, Sterling has fared reasonably against the Euro since the summer of 2019 when an EU deal was looking more likely and this gained traction leading up to the Conservative election win. But the Pound's robustness is coming under increasing pressure as the negotiations headline writers get busy.

Says Privalgo's Will Stephenson: "We are getting news from the front that a 'softer' settlement may be on the cards but despite this, Sterling is finding it hard to beat the 1.18 level. The uncertainty is preventing a sustained higher trend which would send the Pound further down the league table."

Speak to a Privalgo representative today to find out your best strategy for mitigating the GBP/EUR minefield during this time of volatility.

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