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Pound euro exchange rate driven by Brexit as hope grows for UK-EU trade deal

The pound to euro exchange rate has remained largely in the same range over the last few days as Brexit talks remain in a stalemate. Today, a video conference is expected between members of the European Council, although Brexit is not officially on the agenda. Sterling made some gains yesterday, and markets seem to be confident that a Brexit trade deal between the UK and the European Union will be made in due course.

The pound has often rallied when positive news emerges of a possible deal being agreed.

Today, the pound is currently trading at 1.1175 against the euro, according to Bloomberg at the time of writing.

This is above yesterday’s rate of 1.1174.

Michael Brown, currency expert at Caxton FX, an international payments and foreign exchange firm, spoke to Express.co.uk about the latest figures this morning.

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“The receding risk rally meant bigger moves were seen against the commodity-linked CAD and AUD, but both GBP/USD and GBP/EUR also rose.

“GBP/USD is on track for its fourth daily gain in a row as it stretches towards the $1.33 handle this morning – a level that has traded less than 10 days during 2020 so far.

“Back in late September, the currency pair was floating around the $1.26-$1.27 zone, meaning over the past 40 trading days, sterling has climbed nearly five percent against the US Dollar.”

Mr Vessey also said that news of a post-Brexit deal has helped boost sterling in recent days.

However, he also added that Brexit is not the main reason the pair have only seen a small gain.

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