Pound a Buy, Euro a Sell say S.E.B. Eyeing a Brexit Deal

Sell the Euro against the Pound in anticipation of a Brexit deal being done say strategists with SEB, the Scandanavian banking giant.

The British Pound is in recovery mode against the Euro as Brexit sentiment improve, but a tough technical resistance zone lies ahead.  Inflation data dominates Sterling's calendar while for the Euro all eyes are on PMI numbers.

The Pound will rise under all Brexit scenarios so long as a "No Deal" outcome can be avoided, according to analysts at Nordea Markets, who are advocating that clients of the bank buy the currency once an agreement is finalised.

The Pound could find itself on the cusp of a two-month high against the Euro this Thursday if the European Central Bank does what media reports suggest it will and downgrade forecasts for Eurozone economic growth through this year and next.

The Pound is on course to reverse losses and end the year with a gain over the Euro, according to analysts at ING Group

Gains being pencilled in by one prominent technical analyst we follow suggest the GBP/EUR exchange rate could be on course to break the 1.13 level over coming days.

Brexit remains key for Sterling and ongoing progress to achieve a withdrawal agreement should help Sterling over coming days. The Bank of England is meanwhile largely unlikely to materially influence Sterling.

GBP/EUR has risen after news of progress towards a Brexit deal and recent price action appears to have made a technical reversal and is biased to go higher. The policy meetings of both the UK and Eurozone central banks are the main events in the week ahead