Above: Prime Minister Boris Johnson talks to the President of the European Commission, Ursula von der Leyen, about Brexit in his office at 10 Downing Street Picture by Pippa Fowles / Nr 10 Downing Street

Pound sterling extended gains amid signs that a post-Brexit trade deal had been agreed, but final endorsement from UK Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen was hard to pin down on Christmas Eve morning / p>

The pound to euro exchange rate rose to 1 At 1150 a.m. on Thursday morning, the pound to dollar exchange rate fell to 1.36 sterling was 075% higher against the Australian and New Zealand dollars and posted gains against all major currencies in the world

“By eliminating a major downside risk to the UK economy in the short and long term, a deal would unlock significant investment in the UK and support the recovery once the ongoing coronavirus shock begins to fade and provides an opportunity for a positive backdrop for UK stocks and sterling Sterling in 2021, “says Kallum Pickering, an economist at Berenberg Bank

Numerous media outlets reported that a deal had largely been agreed, but delays in the final announcement were likely as leaders pondered the “dirty” text

This would inevitably open the door to last-minute disputes, which Ireland’s Foreign Secretary Simon Coveney confirmed to reporters

The Telegraph reports that last minute negotiations on individual fish species reached a definitive agreement

A von der Leyen and Johnson press conference was scheduled for 8 a.m. GMT, but has since been postponed to 10 a.m. and of course this cannot be guaranteed

Johnson and von der Leyen have been on the phone regularly for the past 48 hours to try to overcome the impasse However, the Daily Mail reports that German Chancellor Angela Merkel avoided “no business” in the eleventh hour

The sterling rally reflects a market now beginning to fully value a deal and more gains could be imminent in the hours ahead

“If on 24 If a deal hits December, GBP is likely to make further gains, “says Tim Riddell, Westpac macro strategist.” GBP / USD is likely to be pushing into a 1.37-140 range, but potential for a more substantial move towards 14500 now seems unlikely. since position exhaustion is so common “

The pound-euro exchange rate is expected to move in the direction of 11364 but Riddell sees “scope for a shift” at 11765

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However, Riddell warns that Brexit will never be over Indeed, the relationship between the two sides will require further discussion and negotiation in the months and years to come

“The concept that an agreement reached would end negotiations between the EU and the UK is wrong. The talks will be a constant, not only because of the need to reach an agreement on financial and other services, but also to Ensure that UK or EU regulatory and legal deviations and changes are taken into account and agreed to in order to maintain the trade agreement “adds Riddell

“The likelihood that larger parts of the UK will put higher Tier 4 restrictions to prevent transmission of the virus will seriously affect the prospects for recovery,” says Jane Foley, senior FX strategist at Rabobank ” Recent developments show that the economic news will get worse before it improves and that the country is facing a difficult start to the New Year “

Assuming a deal is made, Rabobank predicts that the pound to euro exchange rate will struggle to rise above 11236/11363

In a no-deal scenario, Rabobank’s forecast GBP / EUR will fall to 1,0752 / 10526, “depending on whether the door remains open for talks on some sectors over the next year”

“Rising Covid-19 cases, disputes with the government, an expansion of Tier 4 restrictions in England, increased pressure on the public sector and most likely a continuation of negotiations with the EU on areas such as financial services and security inferred that GBP may not be able to shake off its vulnerability or volatility in 2021, “adds Foley,

Berenbergs Pickering says leaving the EU single market and customs union will reduce the UK’s potential growth by hurting its export prospects and reducing inflows of foreign direct investment and skilled workers from the EU

A deal can limit some of the damage, says Pickering Relative to potential growth of ~ 20% as an EU member and less than 1Berenberg estimates that with a hard exit, potential growth in the UK is around 1% at ~ 1 will 7% in the coming years

“In the short term, some disruption at the UK-EU border in January is inevitable as traders will be subject to additional paperwork and controls once the UK leaves the EU Single Market and Customs Union. However, such disruption will be much less than in a no-deal scenario, “says Pickering

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Mortgage Direct – a Spanish mortgage broker specializing in delivering mortgages to expats – has confirmed that it has received its Spanish license

The British pound showed a remarkable lack of excitement for news that the post-Brexit UK and EU had finally signed a trade deal that ends years of uncertainty for businesses, investors and millions of citizens

Pound sterling extended gains amid signs that a post-Brexit trade deal had been struck, but final endorsement from UK Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen was elusive on Christmas Eve morning

According to media reports, the EU and UK negotiators will continue to try overnight to find a final compromise on fisheries and a level playing field to reach an agreement by December 24

The British pound saw a strong rebound against the euro and the dollar on Monday evening, only to return to levels on Tuesday, suggesting the market continues to expect an EU-UK deal

Mortgage Direct – a Spanish mortgage broker specializing in delivering mortgages to expats – has confirmed that it has received its Spanish license

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World news – UK – Pound sterling gains against the euro and dollar as the EU and Great Britain shortly before the Brexit deal is confirmed

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