The Pound Euro (GBP/EUR) exchange rate is consolidating after steep losses in the previous session, trading flat at €1.0950.
Brexit remains the key driver for the Pound and headlines are looking increasingly negative. Boris Johnson’s latest comments point to a greater probability of a no deal Brexit, than a deal actually being achieved.
The Euro trends higher across the board, aided buy a weaker US Dollar. The ECB expanded PEPP by €500 billion as expected and also extended the programme until March 2022. These measures were already priced into the common currency. The ECB made little attempt to talk down the Euro.
German CPI ois expected to show disinflation -0.7% MoM in November.