03.06.2020 Eur/Gbp Daily Analysis

03.06.2020 Eur/Gbp Daily Analysis

Eur/Gbp today is trading at 0.8904, it is trading higher with 0.0006 mainly because of signs of a global economic recovery as well as hopes for more stimulus. The European Central Bank is expected to increase its 750 billion euro ($840 billion) Pandemic Emergency Purchase Program, on Thursday, probably by around 500 billion euros. However, Friday’s forthcoming statement from the UK and EU negotiators could provide crucial direction for the pound. The Eur/Gbp pair according to analysts at Rabobank “On any announcement of a breakthrough in trade talks we would expect GBP to jump higher – although it is possible that a lack of detail in the plan could soon sap optimism.”  “If the negotiators fail to bridge their differences, GBP will be pressured by an increase in the expectation that WTO terms will be in place between the UK and EU trade at the start of the year.”