Sterling has begin the day in positive territory once again as we’re now just 1-day away from the official start to the Brexit process.
Over the past week or so we’ve seen Sterling gain, which suggests to me that the Brexit jitters which have caused the weakening in Sterling’s value over the past year are on the wane.
I personally think there’s an argument to say that the Brexit has already been priced into the Pounds value, and with the Pound gaining on almost a daily basis at the moment some may say the pound was oversold.
I’m not expecting to see any major moves when Brexit is made official tomorrow, but moving forward I think that trade negotiations between the UK and other nations, particularly European nations will be key. There has also been a lot of talk recently regarding the UK’s exit bill with some commentators suggesting a figure of €50bn will need to be paid. I also expect this topic to have the potential to create swings within the GBP/EUR exchange rate as the 2-year Brexit process begins.
For now 1.16 appears to be a ceiling for GBP/EUR as the pair struggled to breach this level yesterday. At the time of writing the pair sit just below this level so it will be interesting to see if Sterling can break this level.
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