The next statement on Friday from UK and EU negotiators could provide crucial guidance for the pound. The level of 0.91 is the level expected on the EUR / GBP pair in one month, according to analysts at Rabobank.
“For any announcement of a breakthrough in trade negotiations, we expect the GBP to climb higher – although a lack of details in the plan may soon erode optimism.”
“If negotiators fail to bridge their differences, the pound will be put under pressure by an increase in the hope that WTO terms will be in place between the UK and EU trade at the start of the year.”
“Our pessimistic outlook puts EUR / GBP at 0.91 on a one month view.”