The GBP to EUR rate has remained range-bound today, trading between 1.14 and 1.15.
The Pound was buoyed at one stage during the session after Michael Saunders of the Bank of England (BoE) commented that he believes UK unemployment will remain close to it’s current 11-year low in the in the coming months.
This news was a welcome rest-bite for the pound which has been under increasing pressure over the past week. The sell-off between GBP/EUR begun on Monday after over the past weekend the UK PM, Theresa May, gave what many are considering to be a ‘Hard Brexit’ biased interview.
She denies these claims, but the currency markets have already had their say with the Pound losing close to a percent and a half throughout the week.
Investors were already weary regarding the Pounds stability as we await the High Courts ruling on whether or not the UK Government require parliamentary approval before invoking Article 50, and initiating the Brexit process.
I think that next week is likely to be eventful, with the Pound having potential to recover some of this week’s losses if the Government is unsuccessful in their appeal against the decision in November.
On the other hand, if the Government is successful I’m expecting to see further Sterling weakness as that decision would mean that the Brexit will begin within the next 2 weeks as the Government plans.
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