04.05.2020 Eur/GBP Daily Analysis

04.05.2020 Eur/GBP Daily Analysis

Eur/GBP is trading higher today at 0.8800 it went up with 0.0018. This is mainly because of the uncertainty of the nature of post-Brexit relationship discussions is weighing on GBP.  As things stand right now the UK has a sizable current account deficit due to the coronavirus and an additional layer of Brexit uncertainty to the economy would really weigh down GBP.  Some investors are of the view that if the future arrangements between the UK and EU  are not resolved by June GBP will be under pressure. Nonetheless, the pound faces some disastrous economic news of its own like the country's failure to test significant proportions of the population is likely making the decisions about how to unwind the lockdowns more difficult, while the high number of Covid-19 deaths in the UK is also a horrifying constraint. Moreso the risk of confusion and delays at UK borders is a concern in the financial markets and this is why GBP is getting weaker against the euro.