Despite positive Economic data from the Eurozone, the Euro struggles to make gains against the Pound.
The euro has found it difficult to make significant gains over Sterling of late despite positive economic data . Job growth and new manufacturing orders hitting seventeen year highs. But , the potential of a Brexit deal being signed off imminently has caused Sterling to strengthen. GBP/EUR moving above 1.14 on Monday before a retraction and then hitting the high 1.13s yesterday.
DUP Halt Brexit Talks
Brexit talks have been very positive with a deal over the Irish border agree in principle it seems. The market moves on rumour as well as fact, so I expect a deal is factored into current levels to some extent. The DUP have thrown a spanner in the woks however which stopped any further gains for the pound. The DUP want Northern Ireland to have the same deal as the rest of the United Kingdom which is understandable as Northern Ireland’s negotiating power would be weak if they are left to fend for themselves.
I would not expect this to be a major stumbling block and I think a deal will be reached shortly, in which case we could see GBP/EUR move toward 1.15. I am of the belief that once we hit phase 2 of negotiations Sterling has the potential for further gains provided Brussels are not too problematic. This could be the case as they have not been very open to progression so far, it seems as though they are making an example of the UK, making things difficult in order to put off any other regions leaving the Eurozone.
If you are a Euro seller, looking at risk vs reward, I would take advantage of current levels.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at email@example.com . (Daniel Johnson) Thank you for reading.