GBP/USD: Pound High vs Dollar As No Deal Brexit Risk Fades
  • Pound (GBP) surged on announcement that EU chief negotiator Michel Barnier and his UK counterpart David Frost in London
  • Investor will now look ahead to Chancellor Rishi Sunak’s summer statement focus on tax cuts and jobs to boost economy
  • Euro (EUR) struggled after European Commission cut growth forecasts, with -8.3% contraction now expected in 2020.
  • Pound Euro (GBP/EUR) exchange rate trades comfortably over €1.11

The Pound Euro exchange rate settled +0.7% at €1.1127. The Pair is pushing tentatively higher in early trade on Wednesday +0.1% at €1.1135.

The Pound surged in the previous session following news that Michel Barnier was coming to London to meet with David Frost and inject some momentum into the post Brexit trade talks. The two met for dinner in an informal setting to discuss some of the negotiations most difficult sticking points. These include business competition regulations, which is also known as the level playing field and EU access to UK fishing waters. Rumors are swirling that Mr Barnier is prepared to compromise on fishing, making a deal more achievable.

Today the focus will be firmly on Chancellor Rishi Sunak as he is set to unveil the government’s stimulus plans to help guide the UK economy out of the coronavirus crisis. The centre piece of his min Budget is expected to be a pledge to reduce stamp duty to boost the housing market. The Pound will be particularly focused on how the Chancellor intended to tackle the jobs crisis. The Chancellor is also under pressure to announce a fresh wave of financial support for British businesses.

The Euro was under pressure in the previous session after disappointing German industrial production data. German industrial production came in weaker than expected, rising 7.8% in May, less than the 10% forecast. The jump came following a -17.5% decline in April.

The European Commission also dampened the mood for the Euro cutting economic forecasts. The region is now expected to contract by -8.3% this year, followed by a 5.8% rise in 2021. Just in May the Commission estimated a -7.4% contraction with a rebound of 6.1%. `

Today there is no high impacting Eurozone data. Looking to wards the second half of the week, the Eurogroup meeting and German trade data will be in focus. 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.