The Pound to Euro exchange rate is still selling off on Brexit fears at the start of the new trading week.
Pound Sterling is now in an established short-term downtrend, which is expected to continue in the coming week.
Analysts at Lloyds Bank Commercial Banking have released their monthly currency report; below are the highlights for key Sterling pairs.
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In their search for a ready solution to the UK leaving the EU, analysts are now proposing membership of the EEA as a top option.
The Pound to Euro's steady downtrend continues, and although the pair has now stalled momentarily we expect it to extend.
The Pound to Euro pair is correcting within a dominant short-term downtrend.
The Pound to Euro continues to fall in an extended downtrend with lower highs and lower lows.
The Euro appears to be strengthening against its major counterparts after the release of ZEW economic sentiment data, despite the gauge showing a modest fall compared to analysts’ expectations and the previous month’s result.
The Pound to Euro exchange rate is showing a bullish chart configuration which suggest the short-term downtrend may be reversing and the pair could be set for greater gains.
There is a risk the Euro could weaken in the run up to the ECB’s rate meeting next Thursday, and possibly afterwards, according to analysts at Nomura.
Technical signs are bullish for GBP/EUR and suggest it may start to move back up towards the 1.2000 range highs.
Mario Draghi sent the Euro soaring in early morning European trade when he indicated that ECB policy may soon move to neutral from accommodative and stated that the recovery in the Eurozone is in full bloom.
The last few months have seen a dramatic fall in the Pound to Euro pair due to a combination of worsening UK data and easing Eurozone political risk.
The British Pound fell against the Euro, Dollar and other major currencies on Tuesday, June 20 following the release of a speech by Governor of the Bank of England Mark Carney.
The Euro to Pound exchange rate has rolled at the range highs amidst a bearish consensus that the pair will go lower in the near-term.
Sterling rallied on Monday morning on the day of the start of Brexit talks.
The Pound has steadied against the Euro despite the lack of certainty in British politics, perhaps more due to traders taking profit from their short-bets than due to any genuine buying interest.
UK Retail Sales, out this morning will show the state of high street spending and provide and insight into the UK economy
The Pound to Euro is in a short-term downtrend on the four-hour chart, which has the potential to extend lower.
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