GBP/EUR has fallen to 1.1200 and broken to the downside of a multi-month range and technical studies suggest more weakness is possible in the week ahead subject to confirmation. Brexit politics continues to dominate Sterling, whilst for the Euro the ECB policy meeting and latest PMI's are major event.
Government faces defeat on customs union vote in parliament later today ensuring the outlook for Pound Sterling is "looking negative" according to one analyst. Whichever way one looks at it the Prime Minister Theresa May remains in a tricky situation.
GBP/EUR finding its feet at the bottom of a long-term range and the week ahead could be pivotal from political, technical and data perspective. Main event for the Pound will be Parliament's reception of May's Brexit white paper; for the Euro, trade data is in top spot.
UBS say go "long" on the Euro against the British Pound as Brexit yo-yoing and Bank of England reticence on raising interest rates are two factors that will disappoint Sterling's bulls. FIBO Group question recent defiant performance by Sterling, see downside
GBP/EUR exchange rate finds support at key 1.13 area again and further GBP strength is expected if Theresa May consolidates her power. However the EU''s response to UK's latest Brexit White Paper is next key hurdle for the currency.