GBP/EUR: Brexit Hopes Keep Pound Elevated Above Euro

The pound euro (GBP/EUR) exchange rate is pushing higher at the start of the week, rising back over €1.15 after steep falls on Friday.

The pound is rising after the new Chancellor Jeremy Hunt had a productive meeting with the BoE Governor Andrew Bailey. Both agree on the importance of fiscal sustainability.

Attention will remain on the gilt market as the BoE withdraws support.

The euro fell on Friday despite German wholesale inflation rising to 19.9% YoY, suggesting that consumer prices won’t ease anytime soon.

Italian inflation is due later and is expected to confirm the preliminary 9.5% reading for September.