{"id":11454,"date":"2019-10-11T03:00:10","date_gmt":"2019-10-11T07:00:10","guid":{"rendered":"https:\/\/currencylive.com\/?p=11454"},"modified":"2019-10-11T02:21:48","modified_gmt":"2019-10-11T06:21:48","slug":"101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\/","title":{"rendered":"GBP\/EUR: Pound Soars On Pathway To Brexit Deal"},"content":{"rendered":"

Hopes of a Brexit deal boosted the pound on Thursday. The pound euro exchange rate rallied to a high of \u20ac1.1325 as the pair gained over 1.4% across the session. The pound is advancing in early trade on Friday.<\/p>\n

The pound rallied hard in the previous session after UK Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar said that they saw a pathway to a deal on Brexit, after unexpectedly upbeat private talks. Following the meeting the Irish Prime Minister sounded surprisingly positive saying that the now believed that a new deal could be achieved by the end of October.<\/p>\n

Britain has reportedly proposed a pared down free trade agreement (FTA) to end the Brexit stalemate and get a deal done by the 31st<\/sup> October deadline. An FTA would likely remove all tariffs on goods crossing between the EU and UK and could go some way to resolving the contentious issue of the Irish border.<\/p>\n

Talks between the EU and the UK will resume today. The positive reaction by Ireland\u2019s Prime Minister is seen as crucial in persuading other EU leaders to support the deal. Investors will continue watching developments very closely.\u00a0 Any sign that the two sides appear to be at least avoiding a hard, no deal Brexit could send the pound higher.<\/p>\n

 <\/p>\n\n\n\n\n
Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit?<\/strong><\/td>\n<\/tr>\n
A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e. immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound-friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

German Inflation Holds Steady At A Weak 0.9%<\/h3>\n

The euro was broadly in favour across the previous session, albeit less so than the pound. The euro moved higher versus most of its peers as investors digested weak German export figures and the minutes from the September European Central Bank (ECB) minutes.<\/p>\n

Whilst German exports shrunk by almost double what analysts had been forecasting, the minutes from the ECB meeting were supportive of the euro. The minutes revealed that ECB decided to go ahead with restarting its bond buying programme despite objections of its own officials. This information highlights the division within the ECB over its dovish stance. Investors are hopeful that incoming President Christine Lagarde will be pressurised to adopt a less dovish position.<\/p>\n

Today German inflation had little impact on the euro after printing in-line with analysts forecasts at 0.9%. This is significantly below the ECB’s 2%. Investors will now look ahead to a speech by ECB President Draghi.<\/p>\n

 <\/p>\n\n\n\n\n
What do these figures mean?<\/strong><\/td>\n<\/tr>\n
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n

 <\/p>\n

For example, it could be written:<\/p>\n

1 GBP = 1.13990 EUR<\/p>\n

Here, \u00a31 is equivalent to approximately \u20ac1.14. This specifically measures the pound\u2019s worth against the euro. If the euro amount increases in this pairing, it\u2019s positive for the pound<\/p>\n

.<\/p>\n

Or, if you were looking at it the other way around:<\/p>\n

1 EUR = 0.87271 GBP<\/em><\/p>\n

In this example, \u20ac1 is equivalent to approximately \u00a30.87. This measures the euro\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the euro.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

This publication is provided as general information only and is not intended as an exhaustive treatment of its subject. TransferWise Inc. and its affiliates (“we” or “us”) expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of this publication, and you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from us.\u00a0 We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Hopes of a Brexit deal boosted the pound on Thursday. The pound euro exchange rate rallied to a high of \u20ac1.1325 as the pair gained over 1.4% across the session. The pound is advancing in early trade on Friday. The pound rallied hard in the previous session after UK Prime Minister Boris Johnson and his […]<\/p>\n","protected":false},"author":163946597,"featured_media":4656,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1396,1386,1413,1395,1393,1394,1387,1620,1619,1406,1391,1392],"class_list":["post-11454","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-usd","tag-boris-johnson","tag-brexit","tag-ecb","tag-eur","tag-euro","tag-gbp","tag-inflation","tag-leo-varahkar","tag-leo-varak","tag-no-deal","tag-pound","tag-sterling"],"acf":[],"yoast_head":"\nGBP\/EUR: Pound Soars On Pathway To Brexit Deal - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR: Pound Soars On Pathway To Brexit Deal\",\"datePublished\":\"2019-10-11T07:00:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\\\/\"},\"wordCount\":755,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100523-gbp-eur-brexit-vote-showdown.jpg\",\"keywords\":[\"boris johnson\",\"Brexit\",\"ecb\",\"eur\",\"euro\",\"gbp\",\"Inflation\",\"leo varahkar\",\"leo Varak\",\"no deal\",\"pound\",\"sterling\"],\"articleSection\":[\"EUR\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101235-gbp-eur-pound-soars-on-pathway-to-brexit-deal\\\/\",\"name\":\"GBP\\\/EUR: Pound Soars On Pathway To Brexit Deal - 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