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The EU and the UK have entered into a period of intensive Brexit talks [Video]

Listen to the latest market mood for the EUR/GBP pair.

Weak EUR, Strong GBP

The EU and the UK have entered into a period of intensive Brexit talks. It is still in the best interest of the EU and the UK to try and reach a trade agreement before the deadline at the end of the year. The EURGBP pair should find sellers on rallies higher as expectations of a deal breakthrough grow. The headlines coming out for Brexit related developments are growing again, but the current mood is that disappointing Brexits headline is faded on the optimism that a deal will finally be reached.

Therefore, expect EURGBP sellers on any rallies higher as long as hopes of a Brexit deal remain.

Trade Risks

  • The main risk to this trade outlook is if the UK firmly commits to leaving the UK without a trade deal.

  • Any near term breakdown in talks will also invalidate this outlook.

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Author

Giles Coghlan LLB, Lth, MA

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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