EUR/GBP Exchange Rate Plunges in Anticipation of Brexit Deal

Recently, most of this week’s Eurozone data was positive.

However, this morning’s stats plunged notably short of prospects.

Moreover, the decline played a part in slamming the Euro to Pound Sterling (EUR/GBP) exchange rate lower this week.

The EUR/GBP eventually avoided losses and ended the week near the level of 0.8535.

It happened after seeing bearish movement in the FX market for most of last week.

So far this week, the EUR/GBP is once again trending with a drawback preference. It is preventing last week’s lows, but it is still smaller in the region of 0.8466 at the time of writing.

The Pound (GBP) is also gaining from Brexit anticipation today. It is amid aspirations that the next steps of the Brexit bill discussion will go smoothly.

On the flip side, the Euro (EUR) undermined versus many primary opponents, including an advancing Pound today. The matter was when the shared currency had reduced the latest Eurozone data.

This morning’s German factory orders and French trade balance saddened investors.

It was because of the German factory orders has unexpectedly shrunk at -1.3% rather than improving to 0.3% as anticipated.

On top of this, French trade balance and consumer assurance data also came in weaker than expected this morning.

Since last week, the Pound has been moving mixed as volatility deteriorates amid prospects of future Brexit uncertainties.

Investors Acquiring British Currency 

Investors are purchasing the British currency today amid expectations that the UK government’s Brexit bill will persist in passing through Parliament smoothly.

In addition, they will make way for the Brexit transition period this year.

Sterling was also backed by Monday’s UK services PMI. It has beat predictions and boosted prospects of UK economic resilience.

Meanwhile, the early-week Eurozone data is reliable, but today’s Eurozone data is weak.

It means that the Euro’s support will have a tendency to remain mixed. The matter is unless upcoming data gives a detailed description of the bloc’s economic performance.

This Thursday, they will look into the publication of Germany’s November trade balance and industrial production results.

The results will give investors a clearer idea of whether or not Germany’s factory sector is indicating any signs of resilience or recovery.

Moreover, the Eurozone unemployment rate data tomorrow, along with the French industrial production on Friday, might also inspire the Euro movement.

The robust data could help EUR/GBP to get back from this week’s losses. However, the poor stats would make it calmer for the Pound to push the pair even lower.

The Pound may also be backed if Brexit developments continue to run smoothly.

Nevertheless, the Euro to Pound (EUR/GBP) exchange rate could pick up more easily instead if Brexit developments cause worries to aggravate.