{"id":4134,"date":"2017-12-05T00:00:00","date_gmt":"2017-12-05T05:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100255-gbp-eur-no-brexit-deal-yet\/"},"modified":"2017-12-05T00:00:00","modified_gmt":"2017-12-05T05:00:00","slug":"100255-gbp-eur-no-brexit-deal-yet","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/","title":{"rendered":"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi"},"content":{"rendered":"

News of \u201cno deal yet\u201d between Britain and the EU, pulled the pound off its earlier highs on Monday. The pound had charged through \u20ac1.14 to hit a monthly high versus the common currency, as investors grew in confidence that UK Prime Minister Theresa May would secure a Brexit deal. The hopes were premature and disappointment sent the pound back towards \u20ac1.1360.<\/p>\n\n\n\n\n\n
What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n
\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

For example, it could be written: 1 GBP = 1.13990 EUR<\/em> <\/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.<\/em> <\/p>\n

Or, if you were looking at it the other way around: 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.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n

Volatility in the pound in the previous session, showed just how politically sensitive the pound is. Pound investors were glued to Brexit deal headlines, almost ignoring data that showed the UK construction industry rebounded in November.<\/p>\n

UK Prime Minister Theresa May and President of the European Commission Jean Claude-Juncker sent the pound sharply lower when they said that no deal had been reached. Issues over the Irish border dispute prevented talks from moving forwards. Opposition from Northern Ireland\u2019s Democratic Unionist party, which gives Theresa May her majority in Parliament, dampened the chances of a draft deal between Dublin and London.<\/p>\n

More talks will take place later in the week. Pound traders are nervous as no deal would mean that Brexit talks will not progress to 2nd phase negotiations. Only in the 2nd phase are discussions over future trading relationships between the UK and the EU able to begin. Similarly, only in the second phase of talks is the EU willing to discuss a possible transition deal. A transition deal would make a smooth Brexit more likely, which is more beneficial to the pound. Therefore, any suggestions that progress to 2nd phase talks isn\u2019t happening, causes the pound to drop.<\/p>\n\n\n\n\n\n
Why is a smooth Brexit good for the pound? <\/th>\n<\/tr>\n<\/thead>\n
A smoother Brexit would be a scenario in which the economic consequences of leaving the European Union are minimised. This is favourable for the pound because the less the Brexit impact on the economy, the more likely that foreign investors will remain interested in the UK. Foreign investors need sterling to invest in the country and so the more GBP is purchased, the higher the demand and, thus, an increase in the currency\u2019s value. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n

Both sides still expect the UK to have made sufficient progress by the EU summit due in 2 weeks, for the next phase of talks to begin. Theresa May and Juncker both sounded optimistic, which limited the sell off in the pound.<\/p>\n

Should there be a lull in Brexit headlines today, investors may turn their attention to UK service sector PMI data. This forward-looking indicator could give traders an idea as to how well the UK dominant service sector is holding up. The PMI, or Purchasing Managers Index measures the health of the industry by surveying Purchasing Managers. A strong reading, could boost the pound to regain some of Monday\u2019s losses.<\/p>\n\n\n\n\n\n
Why does strong economic data boost a country\u2019s currency? <\/th>\n<\/tr>\n<\/thead>\n
Solid economic indicators point to a strong economy. Strong economies have strong currencies because institutions look to invest in countries where growth prospects are high. These institutions require local currency to invest in the country, thus increasing demand and pushing up the money\u2019s worth. So, when a country or region has good economic news, the value of the currency tends to rise. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n

<\/a>Retail Sales In Focus For Euro Traders<\/h2>\n

The euro had a quiet start to the week. Today could see demand for the euro pick up, if the retail sales data impresses investors. <\/p>\n\n\n\n
\n


\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice 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 or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our risk warning<\/a> page for more details.<\/em><\/small><\/p>\n

This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

News of \u201cno deal yet\u201d between Britain and the EU, pulled the pound off its earlier highs on Monday. The pound had charged through \u20ac1.14 to hit a monthly high versus the common currency, as investors grew in confidence that UK Prime Minister Theresa May would secure a Brexit deal. The hopes were premature and […]<\/p>\n","protected":false},"author":163946597,"featured_media":4135,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1386,1395,1394],"class_list":{"0":"post-4134","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-gbp","9":"tag-brexit","10":"tag-eur","11":"tag-gbp"},"acf":[],"yoast_head":"\nPound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi - 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\/100255-gbp-eur-no-brexit-deal-yet\/\" \/>\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\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi\",\"datePublished\":\"2017-12-05T05:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/\"},\"wordCount\":846,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100255-gbp-eur-no-brexit-deal-yet.jpg\",\"keywords\":[\"Brexit\",\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/\",\"name\":\"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100255-gbp-eur-no-brexit-deal-yet.jpg\",\"datePublished\":\"2017-12-05T05:00:00+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100255-gbp-eur-no-brexit-deal-yet.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100255-gbp-eur-no-brexit-deal-yet.jpg\",\"width\":720,\"height\":400,\"caption\":\"Pound Wipes Out Gains vs. Euro Following No Brexit Deal\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100255-gbp-eur-no-brexit-deal-yet\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\",\"name\":\"Currency Live\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/currencylive.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\",\"name\":\"Fiona Cincotta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"caption\":\"Fiona Cincotta\"},\"description\":\"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/fiona-cincotta-bb4a4845\\\/\"],\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/author\\\/fiona-cincotta\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi - Currency Live","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/","twitter_misc":{"Written by":"Fiona Cincotta","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/"},"author":{"name":"Fiona Cincotta","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"headline":"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi","datePublished":"2017-12-05T05:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/"},"wordCount":846,"image":{"@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100255-gbp-eur-no-brexit-deal-yet.jpg","keywords":["Brexit","eur","gbp"],"articleSection":["EUR","GBP"],"inLanguage":"en-US","copyrightYear":"2017","copyrightHolder":{"@id":"https:\/\/currencylive.com\/news\/#organization"}},{"@type":"WebPage","@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/","url":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/","name":"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100255-gbp-eur-no-brexit-deal-yet.jpg","datePublished":"2017-12-05T05:00:00+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100255-gbp-eur-no-brexit-deal-yet.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100255-gbp-eur-no-brexit-deal-yet.jpg","width":720,"height":400,"caption":"Pound Wipes Out Gains vs. Euro Following No Brexit Deal"},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/100255-gbp-eur-no-brexit-deal-yet\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"Pound Wipes Out Gains vs. Euro Following No Brexit Deal, Economic Indi"}]},{"@type":"WebSite","@id":"https:\/\/currencylive.com\/news\/#website","url":"https:\/\/currencylive.com\/news\/","name":"Currency Live","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/currencylive.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec","name":"Fiona Cincotta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","caption":"Fiona Cincotta"},"description":"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.","sameAs":["https:\/\/www.linkedin.com\/in\/fiona-cincotta-bb4a4845\/"],"url":"https:\/\/currencylive.com\/news\/author\/fiona-cincotta\/"}]}},"jetpack_featured_media_url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100255-gbp-eur-no-brexit-deal-yet.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/4134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/users\/163946597"}],"replies":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/comments?post=4134"}],"version-history":[{"count":0,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/4134\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/4135"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=4134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=4134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=4134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}