Listen to the latest market mood for the EURGBP pair.
Weak EUR, Strong GBP
The EU and the UK have entered into a period of intensive Brexit talks. It is still in the best interest of the EU and the UK to try and reach a trade agreement before the deadline at the end of the year. The EURGBP pair should find sellers on rallies higher as expectations of a deal breakthrough grow. The headlines coming out for Brexit related developments are growing again, but the current mood is that disappointing Brexits headline is faded on the optimism that a deal will finally be reached.
Therefore, expect EURGBP sellers on any rallies higher as long as hopes of a Brexit deal remain.
- The main risk to this trade outlook is if the UK firmly commits to leaving the UK without a trade deal.
- Any near term breakdown in talks will also invalidate this outlook.