Euro Pound Sterling (EUR/GBP) Exchange Rate Muted as German Import Prices Slide
The Euro Pound Sterling (EUR/GBP) exchange rate remained muted, leaving the pairing trading at around £0.8537.
The single currency remained flat on Monday after data from the bloc’s largest economy showed import prices slipped by -2.1% in November.
Month-on-month German import prices edged up by 0.5%, slightly above forecast and following a drop of -0.1% in October.
However, since markets remain quiet today ahead of the Christmas holidays, the Euro was left flat against the Pound.
No-Deal Brexit Fears Leave Sterling (GBP) Under Pressure
Last week the pairing slumped over the course of the week, and continues to remain around the lowest levels seen since the start of the week.
Sterling was able to claw back some losses at the end of last week after MPs voted in favour of Boris Johnson’s Brexit Withdrawal Agreement.
Although, the Pound remained under pressure despite this creating some certainty as the data for the country’s departure from the bloc is set for the 31st January.
However, the pairing remained under pressure as the bill reignited fears of a no-deal Brexit once again.
The Prime Minister announced that any extension of the post-Brexit negotiating period, which is scheduled to end in December 2020.
Following this announcement that December 2020 would be a hard deadline for a trade deal to be reached, GBP suffered the largest weekly slump since October 2016.
Euro Pound Outlook: GBP/EUR to Remain Flat Over Festive Period
Looking ahead, it is unlikely there will be a lot of movement of the Euro Pound (EUR/GBP) exchange rate over the next week.
Traders seem to be more focused on Christmas and commenting on this, Société Générale’s Kit Juckes stated:
‘We’ve made it past the shortest day, but markets are still struggling to wake up and the morning’s FX range could be covered by a handkerchief. Sterling’s bounced a bit […] the market’s got mince pies on the mind.’