GBP/EUR: Pound Flat vs. Euro Following BoE & ECB

The Pound Euro (GBP/EUR) exchange rate is paring yesterday’s gains on Thursday, trading back below €1.1050.

Hopes of a Brexit trade deal being reached are fading. UK Prime Minister Boris Johnson and EC President Ursula von der Leyen failed to close the gap on differences in negotiations and have given the talks until Sunday to reach an agreement.

Attention will turn to the ECB, which is expected to ease monetary policy today by adding a further €500 billion to the QE programme to support the Eurozone economy. Rising covid numbers and tighter lockdown restrictions are sending the region towards a double dip recession.