17.04.2020 Eur/GBP Daily Anlalysis

17.04.2020 Eur/GBP Daily Anlalysis

Eur/Gbp today is trading at 0.8710, it went up with 0.0013 from 0.8697. The pair went up today because the U.K is facing a lot of pressure as they set to renew talks on leaving the EU without a deal.  The negotiations are said to take place in three sessions  through video conference beginning April 20, May 11 and June 1. In this case, post Brexit negotiations are going to be the key driver for sterling, amid the economic uncertainty around whether the U.K and EU will be able to agree on a post-Brexit deal on their future relationship. It is of importance to note that if Britain risks leaving without a trade deal with the EU it may hinder its economy negatively especially now there is pressure already on the economy due to coronavirus. Thu Lan Nguyen is also in support of this as he stated that 'while my base case is that Brussels and London will come to some kind of agreement at the last minute, I do think that there will be a phase of uncertainty with higher sterling volatility before that happens'. Right now it is not clear where the negotiations are going to be in favor of the U.K or not and because of that GBP is weaker against the Eu making Eur/GBP pair to go up today.