GBP/EUR: Can Pound Pick Up vs Euro After Falling 1.3% This Week?

The Pound Euro exchange rate managed to hold onto gains across the previous week despite a sharp sell off on Friday. The pair is edging higher ahead of the London open on Monday at €1.11.

Encouraging UK macro data is being weighed up against a lack of progress in last week’s Brexit talks and reports that the British government is preparing for a worst case scenario of a no trade deal Brexit coinciding with a second wave of coronavirus.

The Euro remains under pressure as fears of a second wave increase and amid growing doubts over the strength of the economic recovery in the bloc. With no economic data due for release the pair is at the mercy of broader market sentiment.