Pound to Euro GBPEUR Rises as UK EU

GBP/EUR Exchange Rate Edges Higher on Brexit Trade Deal Hopes

Forex Signals by FxPremiere.com The Pound to Euro (GBP/EUR) exchange rate rose by 1% today, with the pairing currently trading around €1.103.

Sterling rose today after UK Prime Minister Boris Johnson and the European Commission’s President, Ursula von DER Leyen, both agreed to ‘go the extra mile’ to secure a post-Brexit trade agreement.

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Johnson commented:

‘I think that the UK should continue to try. And I think that’s what the people of this country would want me to do. We’re going to continue to try and we’re going to try with all our hearts, and we’ll be as creative as we possibly can. But what we can’t do is compromise on that fundamental nature of what Brexit is all about.’

As a result, the Pound (GBP) has benefited from renewed optimism that UK-EU trade talks could result in a deal by the year-end.

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Michel Barnier, the EU’s Chief Negotiator, was also optimistic, saying that a trade agreement between the two sides was ‘still possible’.

Barnier said:

‘We are going to give every chance to this agreement … which is still possible.’

Pound Euro GBPEUR Exchange Rate

Any further progress in Brexit talks today could see the GPB/EUR exchange rate head higher.

Euro (EUR) Falls as Germany Will Face Further Lockdown Restrictions in January

The Euro (EUR) struggled today following news that Germany – the Eurozone’s largest economy – will enter a strict lockdown from Wednesday 10^th January.

Consequently, EUR traders are becoming more cautious as new lockdowns and increasing Covid-19 infections are weighing on sentiment throughout Europe.

Pound to Euro GBPEUR Exchange Rate

Markus Söder, Bavaria’s Prime Minister, commented:

‘If we’re not careful, Germany could quickly become Europe’s problem child. For that reason, we had to and we must act.’

Last week saw the European Central Bank (ECB) announce a fresh burst of stimulus to aid the Eurozone’s economic recovery.

However, with Germany now facing a lockdown and other European countries likely to follow, the outlook for the Eurozone’s economy is looking increasingly uncertain.

Nonetheless, with Europe’s rollout of the Covid-19 vaccine, things are beginning to look brighter.

Euro US Dollar (EUR USD) Exchange Rate

Christine Lagarde, the ECB’s President, saying that there are ‘good reasons to believe that by the end of 2021 we will have achieved sufficient herd immunity’ from the coronavirus.

In Eurozone economic news, today saw the release of October’s Industrial Production, which beat forecasts and rose by 2.1% month-on-month.