Brexit Deadlock and the EUR/GBP

TL;DR

Euros and Sterling are being influenced by ongoing Brexit negotiations and a slowdown in the European economy.

Transcript

hello my name is Craig Elam senior market analyst at I wonder and today we're gonna talk about euros sterling two really interesting currencies right now one for obvious reasons being the impact that we're seeing from these breaks at negotiations the on-going debates that we're seeing in Parliament the fact that at the moment Parliament is struggli... Read More

Key Insights

• ❓ Brexit negotiations and debates in Parliament are causing uncertainty and impacting the value of Sterling.
• 🇪🇺 The Euro is weakening due to a significant slowdown in the European economy, highlighted by poor German manufacturing data.
• 🫱 Global issues such as the US-China trade war and automotive sector slowdown are contributing to the negative economic implications.
• 📈 Momentum is currently with the Bears, suggesting a continued weakening trend for the Euros and Sterling.
• 😚 The closer we get to a Brexit deal, the more pressure the 83-84 levels of support for Euros and Sterling may face.
• ❎ If Brexit negotiations take a negative turn, a no-deal scenario could potentially be negative for the Pound.
• 🍉 The 86.50-87 levels are previous long-term support and more recently resistance for Euros and Sterling.

Questions & Answers

Q: How are Brexit negotiations affecting the value of Sterling?

The ongoing debates and struggles in Parliament, particularly the possibility of not resuming Theresa May's deal, are causing uncertainty and impacting the value of Sterling.

Q: Why is the Euro weakening?

The Euro is weakening due to a significant slowdown in the European economy, highlighted by poor German manufacturing data. Global issues like the US-China trade war and automotive sector slowdown are also contributing factors.

Q: What are the potential levels of support and resistance for the Euros and Sterling?

In the new range, the Euros and Sterling are currently around 85 levels. Above this, there are levels around 86.52-87, which were long-term support. Below, there are levels around 83-84, which are even longer-term support.

Q: How is momentum affecting the Euros and Sterling?

Momentum is currently with the Bears, suggesting that the Euros and Sterling are more likely to continue weakening. However, if Brexit negotiations take a positive turn, it could potentially change the trend.

Summary & Key Takeaways

• Brexit negotiations and debates in Parliament are impacting the value of Sterling, with the possibility of MPs converging around another option as a potential outcome.

• The Euro is weakening due to a significant slowdown in the European economy, highlighted by poor German manufacturing data.

• Global issues such as the US-China trade war and automotive sector slowdown are contributing to the negative economic implications.