{"id":4422,"date":"2018-03-20T00:00:00","date_gmt":"2018-03-20T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100399-gbp-eur-brexit-uk-inflation\/"},"modified":"2018-03-20T00:00:00","modified_gmt":"2018-03-20T04:00:00","slug":"100399-gbp-eur-brexit-uk-inflation","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100399-gbp-eur-brexit-uk-inflation\/","title":{"rendered":"GBP\/EUR: Brexit and UK Inflation Affects Pound vs Euro"},"content":{"rendered":"<p>A breakthrough in negotiations between the UK and the EU saw the pound climb sharply higher, to a one-month peak versus the euro. The pound euro exchange rate soared 0.7% to \u20ac1.1435, before easing back towards the close, giving back almost all the gains.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> 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> For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <\/p>\n<p> <em>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<p> Or, if you were looking at it the other way around: <em>1 EUR = 0.87271 GBP<\/em> <\/p>\n<p> <em>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<p>The pound received a boost on Monday after UK Brexit Secretary and EU Chief negotiator Michel Barnier announced that a \u201cdecisive step had been taken\u201d as the EU and the UK agree a post Brexit transition deal. This will be a period of 21 months whereby the UK will continue abiding by EU rules, but it will have no powers in decision making.<\/p>\n<p>In order to reach this agreement, the UK has essentially submitted to almost all of the EU\u2019s demands. However, the Northern Ireland border issue remains an issue and still requires further negotiations. However, a backstop has been included, whereby Northern Ireland will remain in the single market, should no other solution be found. The market has been focussing on the transition deal for some time and although it is a temporary solution, it gives businesses time to adjust to their new reality post Brexit. The deal is not legally binding and is dependent on a Brexit deal being reached. However, it is sufficient to increase confidence that a Brexit deal will be reached, making a hard Brexit less likely.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>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 class=\"table table-bordered\">\n<p>Today UK economic data is back under the spotlight. Investors will look towards UK inflation data, in the form of Consumer Price Index (CPI). Analysts are expecting CPI to have ticked lower in March to 2.8%, down from 3% in February. Weaker inflation could see the pound give up some of today\u2019s gains.<\/p>\n<h2><a href=\"#eurozone-economic-sentiment-to-pull-euro-lower-\" name=\"eurozone-economic-sentiment-to-pull-euro-lower-\"><\/a>Eurozone Economic Sentiment To Pull Euro Lower?<\/h2>\n<p>The euro was also in demand in the previous session, albeit less so than the pound. The euro tends to trade inversely to the US dollar and the US dollar was firmly out of favour on Monday, leaving investors searching for the euro. Furthermore, upbeat comments on consumer prices from two European Central Bank (ECB) Governing Council members Klaas Knot and Francois Villeroy de Galhau also underpinned euro strength, as investors consider the possibility of the ECB tightening monetary policy sooner rather than later.<\/p>\n<p>Whilst there was no fresh data from the eurozone on Monday, today investors will look towards economic sentiment in the bloc and Germany, the powerhouse of Europe. Analysts are expecting ZEW sentiment survey for the eurozone to show a slight dip in confidence which could weigh on the euro.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\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 <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>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":"<p>A breakthrough in negotiations between the UK and the EU saw the pound climb sharply higher, to a one-month peak versus the euro. The pound euro exchange rate soared 0.7% to \u20ac1.1435, before easing back towards the close, giving back almost all the gains. What do these figures mean? When measuring the value of a [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4423,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1386,1395,1394,1387],"class_list":["post-4422","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-brexit","tag-eur","tag-gbp","tag-inflation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR: Brexit and UK Inflation Affects Pound vs Euro - 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\/100399-gbp-eur-brexit-uk-inflation\/\" \/>\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\\\/100399-gbp-eur-brexit-uk-inflation\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100399-gbp-eur-brexit-uk-inflation\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR: Brexit and UK Inflation Affects Pound vs Euro\",\"datePublished\":\"2018-03-20T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100399-gbp-eur-brexit-uk-inflation\\\/\"},\"wordCount\":819,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100399-gbp-eur-brexit-uk-inflation\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100399-gbp-eur-brexit-uk-inflation.jpg\",\"keywords\":[\"Brexit\",\"eur\",\"gbp\",\"Inflation\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100399-gbp-eur-brexit-uk-inflation\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100399-gbp-eur-brexit-uk-inflation\\\/\",\"name\":\"GBP\\\/EUR: Brexit and UK Inflation Affects Pound vs Euro - 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