EURGBP Moves Lower as Markets Brace for Deal Announcement

Summary:

The EURGBP was lower by 0.40% in early trading on Thursday as the U.K. and European Union looked ready to announce a formal Brexit agreement.

The EURGBP was lower by 0.40% in early trading on Thursday as the U.K. and European Union looked ready to announce a formal Brexit agreement. The U.K.’s media are expecting Boris Johson to announce the terms of the deal later this morning at Downing Street.

The outline of a limited deal was said to be agreed overnight and negotiators are now haggling over the wording. The deal will still need to be presented to the 27 EU countries and the U.K. Parliament before it comes into force. This leaves ministers very little time to approve the deal and businesses will also have limited time to adapt. The talks have been stalled by fishing rights in recent weeks, but a compromise looks to have been found.

A Brexit deal announcement could see initial pound gains and then the market will go back to considering the effects of further lockdowns on the economy with much of the country now under a strict Tier 4 agreement. Boris Johnson added further counties in Southern England to the list yesterday.

EURGBP Technical Outlook

EURGBP was trading below the 0.9000 level with key support below at the 0.8870 level. A move below there could see a new pro-sterling path emerge in the currency pair. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.