The euro was buoyed by political uncertainty in Britain, with investors expecting the country’s exit from the European Union putting pressure on growth and keeping the pound weak. All eyes were focussed on the third round of Brexit negotiations between David Davis and European Union’s chief negotiator Michel Barnier, which started on Monday, with Barnier saying he was concerned at the tardy progress of the talks.
The weakness in the pound has been further exacerbated in recent weeks on concerns that Theresa May could be replaced as Prime Minister and Tory leader at the Conservative Party’s autumn conference in October, creating fresh political turmoil. EURGBP is currently hovering around the 0.92600 zone after touching a high of 0.93060 on Tuesday.
Sterling Sinks Against Euro
Daily Analysis - 30/08/2017