GBP/EUR: Pound Shakey vs. Euro Ahead of Brexit Bill Debate

EUR/GBP advances for the fourth straight session on Thursday.
The ECB’s upbeat economic outlook gave fresh legs to the Euro.
Brexit-risks weigh on the Pound, underpinning the pair.

The EUR/GBP pushed higher  in early European trade, with bulls attempting to advance past 0.9100 .

After the pair experienced an intraday pull back from a 6 week high on Wednesday ,a mild uptick in the Euro was helping EUR/GBP gain ground on Thursday. News, reported on Bloomberg that the ECB was increasingly more upbeat about the Eurozone’s economic outlook, buoyed the common currency.

The British pound failed to take advantage of an overnight short-covering move owing to concerns over Brexit trade talks. The British government unveiled its internal market bill on Wednesday, which could undermine parts of the Brexit divorce treaty.

The legislation was widely criticised and raised the probability of a hard Brexit. This kept the Pound bears on the offensive underpinning the EUR/GBP. That said traders appeared reluctant to place aggressive bets prior to the ECB monetary policy decision on Thursday.

The ECB is not expected to adjust monetary policy in its September meeting. Instead, investors will be listening closely for any comments surrounding the Euros recent appreciation and the new economic projections, both of which could be factors which drive euro in the near-term.

Brexit headlines could also continue to drive sentiment surrounding the Pound .These factors should help investors determine the next  for the EUR/GBP cross.