GBP/EUR: Euro Rallies vs. Pound As Italy Seeks To Avoid Debt Crisis

GBP is flat against the EUR on Friday.

  • Sterling struck 2-month lows vs. the euro, before clawing back the losses
  • The euro (EUR) has been surging on rising hopes for progress towards Eurobonds
  • EU’s De Rynck comments on EU fisheries policy for Brexit –  Real time exchange rates

GBP/EUR was lower by 12 pips (+0.10%) to 1.1106 as of 3pm GMT.

The currency pair sank quickly to 1.105 but later recovered the losses after a lack of follow through with some buying taking place ahead of the 1.10 round number.

GBP: Fisheries still a top dispute in post-Brexit talks

While Brexit is an ever-present weight around the neck of the British currency, it was mostly a matter of euro-strength that pulled the pound weaker on Friday.

On the matter of the post-Brexit trade talks set to resume next week, the EU’s De Rynck said “It is a tall order to get an agreement on fisheries by the deadline.” Fishing waters have been a top political issue for both sides with the EU demanding continued unfettered access as part of a trade deal while the UK sees the issue as a matter of territorial sovereignty. De Rynck, who is a senior advisor to Chief Negotiator Barnier adde that there is “no appetite on the EU side to revise the mandate on fisheries.”

EUR: Rising hope for Eurobonds (Coronabonds)

The euro was a standout winner across FX markets on Friday, making a decisive breakout beyond 1.10 to the dollar – which traders view as a possible sign of a new bullish trend in the exchange rate.

Investors are taking the view that France, Germany and Senior politicians at an EU level can broker a compromise on the proposed €750 billion Recovery Fund that satisfies those countries most in need of help in the pandemic who don’t want to take on more debt and the so-called Frugal counties that are concerned about wedding themselves to their less credit-worthy neighbours. The rise in the euro comes ahead of next week’s ECB monetary policy decision, where expectations are building for an expansion of the PEPP. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.