- Brexit optimism continues to support Pound (GBP) in quiet session
- Packed UK beaches raise concerns of second wave
- EU US trade tension drag on Euro (EUR)
- Pound Euro exchange rate (GBP/EUR) on track for 0.2% gain across the week, after declining -0.7% last week
The Pound is extending gains versus the Euro on the final day of the trading week. The Pound Euro exchange rate settled on Thursday + 0.7% at €1.1070, slightly down from the weekly high of €1.1111 reached earlier in the session.
At 05:15 UTC, GBP/EUR trades +0.1% at €1.1077, as the pair stays in familiar territory.
Brexit remains in focus ahead of Brexit trade talks which begin again next week. Comments by EU Chief Negotiator Michel Barnier, that a deal was still possible boosted the Pound in the previous session and continues to under pin sterling on Friday.
Just a day after scientists warn that the UK is likely to experience a second wave of coronavirus infections, for easing lockdown measures to soon, Britain’s beaches were full to the brim with huge crowds flocking to the coats. For now, the financial markets are looking past this fear with the Pound pushing higher and the UK stock market pointing to a stronger start.
There is no high impacting UK data due for release today. Attention could turn towards the Bank of England quarterly bulletin.
The Euro traded broadly lower in the previous on weak risk sentiment. The World Health Organization warned that the number of coronavirus cases were once again on the rise in Europe, with 20,000 new cases a day being reported and 700 deaths.
A rising number of cases across the globe has weighed on sentiment across the week, as concerns grow that the fragile economic recovery could be knocked off course.
Trade tensions with the US continue to be a thorny issue for the common currency after reports that the White House is prepared to apply tariffs on $3.1 billion worth of EU goods. Germany is considering striking back against President Trump and could try to pressure him with coordinated EU tension.
With no high impacting Eurozone data, today could be a relatively quiet session.